India Remains on ‘Priority Watch List’ of US Trade Representative: Know Key Highlights

Outlook Business Desk

Trade Concerns with India

Just a day before US President Donald Trump's "Liberation Day" on April 2, the US Trade Representative (USTR) flagged a wide range of concerns over India's trade practices in its 2025 National Trade Estimate (NTE) Report.

India on PWL

Washington noted that it fears another China in the making and also placed India on the ‘Priority Watch List’ (PWL) over intellectual property (IP) concerns including a lack of specific laws for “trade secret protection” and long waiting periods for patent grants.

High Tariffs on Agricultural Goods

"High tariff rates also present a significant barrier to trade in other agricultural goods and processed foods," the report said. It further stated that India's bound tariff rates on agricultural products under the World Trade Organization (WTO) are among the highest globally, averaging 113.1% and reaching up to 300%.

Access to Dairy Market

The report also highlighted some "critical issues" such as the US government's continued pressure on India to provide greater access to the dairy market for US products.

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Biotech Approval Concerns

"India’s biotechnology approval processes are slow, opaque, and subject to political influences, and do not appear to take into account science-based approval processes for GE products in exporting countries,” the report further added.

Delayed Medical Imports

The USTR flagged India's price caps on stents and implants, noting they ignore inflation, costs and innovation, potentially deterring US firms from servicing in India.

Content Takedown Concerns

Highlighting challenges around foreign trade barriers, the report said that US firms in India face a growing number of takedown requests for content and user accounts on seemingly political grounds.

Digital Trade Barriers

The report also pointed out restrictive digital trade policies, including India's stringent data localisation norms, which require companies to store data locally. The USTR raised concerns that such measures could hinder US businesses' operational efficiency and increase compliance costs.

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