Overview
- The U.S. Trade Representative’s 2026 National Trade Estimate names India’s content takedown regime, data and privacy rules, UPI practices, localized internet shutdowns, and high farm tariffs as barriers for American firms.
- The report says U.S. platforms have faced more government takedown orders since 2021 that appear politically motivated and warns that strict deadlines and the threat of employee liability raise compliance risks; India in February cut some removal windows to two or three hours.
- On payments, the U.S. cites a non‑level playing field in the Unified Payments Interface run by the National Payments Corporation of India, pointing to limits on foreign providers and concern over a proposed 30% cap for third‑party apps on UPI.
- The U.S. flags data localization rules for banks and payment firms that restrict cross‑border data flows and make fraud detection harder, and it says localized internet shutdowns disrupt services and e‑commerce and impede digital trade.
- Indian officials defend tighter controls as a response to harms such as deepfakes, even as new drafts would widen who can issue blocking orders and bind platforms to ministry advisories, and the U.S. plans to seek binding fixes in ongoing trade negotiations.