US Flags India's IT Rules as Trade Barriers Again
Washington sees a trade barrier in India’s IT rules
The Economic TimesImage: The Economic Times
The United States has raised concerns over India's Information Technology rules, citing impractical compliance deadlines and politically motivated content takedown requests. The US Trade Representative's 2026 report criticizes India's Digital Protection & Data Privacy Rules for imposing burdensome requirements on data fiduciaries, impacting American trade and investment.
- 01The US Trade Representative identifies India's IT rules as trade barriers.
- 02Concerns include impractical compliance deadlines and politically motivated takedown requests.
- 03The Digital Protection & Data Privacy Rules impose burdens on data fiduciaries.
- 04This marks the sixth consecutive year of criticism from the USTR regarding India's IT regulations.
- 05Issues cited include over-compliance and criminal liability for US tech firm employees.
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In its 2026 Foreign Trade Barriers report, the United States has once again highlighted India's Information Technology rules as significant trade barriers. The report, issued by the US Trade Representative (USTR), criticizes the rules for their 'impractical compliance deadlines and take-down protocols.' It points to an increase in content takedown requests that seem politically motivated. Additionally, the USTR condemns the Digital Protection & Data Privacy Rules, stating they impose 'burdensome requirements' on data fiduciaries and necessitate the disclosure of personal data to the government. The report emphasizes that these regulations hinder American trade and investment in India. Notably, this is the sixth consecutive year the USTR has raised concerns about India's personal data protection regime and its potential restrictions on cross-border data flows. The USTR also notes that the rules' lack of deemed consent for credit bureaus affects their operational capabilities in India. Key issues include a focus on over-compliance, obligations to identify sources of information, and the criminal liability of employees working for US tech firms.
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The criticisms of India's IT rules may lead to strained trade relations with the US, potentially affecting American companies operating in India.
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