The United States Trade Representative (USTR) has identified India's Unified Payment Interface (UPI) as a significant trade barrier, limiting American companies' market access and impacting digital trade flows. The USTR's report highlights that the enforcement of UPI policies by the National Payments Corporation of India favors domestic players, complicating participation for foreign firms. Additionally, data localization requirements for payment service providers and banks are criticized for increasing operational costs and hindering cross-border data flows, thus acting as a digital trade barrier. The report also notes localized internet shutdowns in India, which disrupt digital services and business continuity for global firms.

Furthermore, the USTR raised concerns about India's high tariffs on agricultural products and various non-tariff barriers, including regulatory restrictions in sectors like financial services and telecommunications. In response, USTR Jamieson Greer emphasized the U.S. administration's commitment to address unfair trade practices and convert existing frameworks into enforceable agreements aimed at reducing both tariff and non-tariff barriers for U.S. exports.