Ustr India Trade – USTR Flags India Trade Commercial barriers before possible mutual definitions

Reports from the United States Commercial Representative Office (USTR) have highlighted several obstacles to American exports, investment and digital trade in India.

It was released earlier today, and the 2025 National Trade Inclusion report submitted by foreign trade barriers a detailed assessment of restrictions in the main sectors and paved the stage on possible mutual definitions in India alongside most countries around the world.

According to the report, India maintains some of the highest definitions between major global economies. The average rate of the most important tariff (MFN) is 17 percent, with an average agricultural products 39 percent is very slope. In some cases, such as alcoholic drinks and nuts, duties can range from 100 percent to 150 percent. Ustr said that India is practicing great flexibility to change the definitions unexpectedly, creating a volatile environment for American exporters.

In addition to the customs tariff, the report defines a set of non -transmitted barriers, including restricted import license, restrictions on re -manufactured goods and used medical devices, arbitrary quantitative restrictions on products such as beef and boric acid. Complex customs procedures, non -consistent regional application of rules, evaluation disputes, increases trade difficulties.

USTR also raises warnings about technical barriers in front of trade, noting the increasing dependence of India on the compulsory compliance with Indian standards office systems across various sectors such as chemicals, electronics and communications. These standards are often applied with limited consultation for stakeholders and short transitional periods, which puts non -proportional burdens on foreign companies.

In agricultural space, health measures and vegetarian health remain a flash point. The report criticizes the rules of India -based science of dairy dairy and grains and a genetically -free certificate. GMOs are still prohibited from genetically designed products, dried Distiller grains with solvents, and clover straw. Strict pest controls in India and evaporation requirements, especially the treatment of methyl bromide, are described as unnecessary stressful and improperly applied.

Intellectual property rights are still a painful point. India is still in the USTR priority monitoring list, with concerns including restricted patent (especially medicines), secret protection of weak trade, online piracy, and judicial delay in branded disputes.

In services and investment, USTR is cited the limits of foreign direct investment in sectors such as retail, banking services and legal services. Foreign companies often work in a non -favorable position compared to local players, facing additional restrictions and preference policies that prefer state -owned institutions.

On the digital front, the new digital data protection law in India introduced the delegations of data localization and the provisions of access to the government. American concerns also focus on the rules of information technology in India, which puts personal criminal responsibility on the platform employees and lacks clarity. The repeated closure of the Internet and political motivated content simulations are also placed as a tariff for digital trade.

Although India removed the 2 % digital services tax in 2024 under the Organization for Economic Cooperation and Development Agreement, there are still old restrictions and data restrictions.

The report also highlights agricultural support in India, especially through the minimum support price program, which stimulates excessive production and distorts global markets. India has exceeded the boundaries of the World Trade Organization support and seeks to obtain a permanent exemption under the provisions of food security.

Ustr also indicated that there are no central government purchases policies, transparency in setting rules, and World Trade Organization notifications. With mutual definitions under discussion, these results may soon have realistic effects on the trade relations of the United States.