US raises concerns at India’s high duties, IPR regime

In its 2025 National Trade Estimate (NTE) report, the US Trade Representative raised concerns on India’s opaque and unpredictable quantitative restrictions, patent regime and digital trade barriers such as data storage requirements.

Most of the issues are repeat of the earlier reports while those such as equalisation levy and WTO disputes, which are already resolved, continue to be mentioned in the report, experts said.

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It also criticized India’s strict import licensing for remanufactured goods and medical devices. In 2024, India stopped issuing licenses for refurbished American medical devices, affecting exports. While Washington sees this as unnecessary red tape, India worries that relaxing the rules could lead to a flood of secondhand or low-quality products that might harm consumers and hurt local industries.

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“India maintains high applied tariffs on a wide range of goods, including vegetable oils (as high as 45%), apples, corn, and motorcycles (50%), automobiles and flowers (60%), natural rubber (70%), coffee, raisins, and walnuts (100%), and alcoholic beverages (150%),” the USTR said in its annual report that lists key policies and practices of countries that affect US exports, investments, and digital trade.

In addition, India maintains “very high” basic customs duties on drug formulations, including life-saving drugs and finished medicines listed on the World Health Organisations list of essential medicines.

“High tariff rates also present a significant barrier to trade in other agricultural goods and processed foods (like poultry, potatoes, citrus, almonds, pecans, apples,