US Identifies India's Trade Barriers in Latest Report
USTR lists India's UPI and data rules as trade barriers
The Economic TimesImage: The Economic Times
The US Trade Representative (USTR) has identified several barriers to trade with India, including restrictions on electronic payment services like the Unified Payments Interface (UPI), local internet shutdowns, and high tariffs on agricultural products. A joint statement on February 6, 2026, emphasized ongoing efforts to finalize a mutually beneficial trade agreement.
- 01USTR cites India's preference for domestic satellites and UPI restrictions as trade barriers.
- 02High tariffs on agricultural products and surcharges on imports are also highlighted.
- 03The US and India are working on a framework for a trade agreement.
- 04American firms face increasing content takedown requests in India.
- 05The US government is advocating for greater access to the Indian dairy market.
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In its 2026 National Trade Estimate Report on Foreign Trade Barriers, the US Trade Representative (USTR) identified several trade barriers posed by India. Key issues include India's preference for domestic satellites in direct-to-home (DTH) television services, restrictions on American electronic payment services participating in the Unified Payments Interface (UPI), and stringent data localization requirements. The report also mentions high tariffs on agricultural products, surcharges, and the goods and services tax on imports as significant obstacles. On February 6, 2026, the US and India released a joint statement outlining a framework for an interim trade agreement aimed at achieving reciprocal benefits. Furthermore, the USTR noted that American businesses have faced an increasing number of politically motivated takedown requests for content and user accounts since 2021. The report highlights ongoing US efforts to gain better access to the Indian dairy market, including advocacy for the import of dried distillers' grains (DDGS), which have not yet been approved by India as of December 31, 2025.
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The identified trade barriers could hinder American companies' ability to operate in India, affecting their market access and competitiveness.
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