The United States has once again taken issue with India’s digital regulations and tech-related trade practices, this time through its 2025 National Trade Estimate Report on Foreign Trade Barriers.
The annual report, released from Washington DC, points to a range of concerns—from rising content takedown requests to mandatory local product testing.
The report highlights what it calls an "increasing number" of takedown demands issued to US firms operating in India—particularly requests to remove content and user accounts. What seems to have caught Washington’s attention is the nature of these requests, which, according to the report, sometimes appear “politically motivated.”
This is not a new controversy. The Ministry of Electronics and Information Technology (MeitY) has long been facing criticism, both from platforms and civil society, over how it handles online content regulation.
In a recent twist, social media platform X (formerly Twitter) has approached the Karnataka High Court, arguing that the ministry has been misusing Sections 69 and 79(3)(b) of the Information Technology Act, 2000.
The platform claims the government is engaging in arbitrary censorship.
The report also flags the Information Technology Rules of 2021 as a sore point. These rules apply to so-called "significant social media intermediaries" and include provisions that, some argue, go too far. Among the criticisms: companies could face criminal charges if they don't comply, deadlines are tight, and takedown procedures are not always clear.
Some US companies see these conditions as “concerning,” the report notes, especially when the personal liability of employees is involved.
India’s draft Digital Personal Data Protection (DPDP) Act has also come under the scanner. The US believes that the proposed obligations on companies, especially data fiduciaries (entities handling personal data), might be heavy-handed.
While the final rules are yet to be notified, the draft has already raised eyebrows for the level of compliance it might demand.
Another area of concern is India’s frequent internet shutdowns. The US report says these disruptions are being closely monitored for their potential impact on American businesses—especially those providing digital services or relying on real-time data access.
One of the more technical yet persistent disputes involve India’s insistence on domestic testing and certification of telecom and tech equipment.
The US argues this approach is duplicative and expensive.
India’s 2014 Compulsory Registration Order requires electronics and ICT (information and communication technology) products to be tested in labs accredited by the Bureau of Indian Standards (BIS). According to the US, this pushes up costs—sometimes by tens of millions of dollars.
In response, Washington has urged India to:
--recognise test results from globally accredited labs, especially those certified by the International Laboratory Accreditation Cooperation (ILAC)
--drop the requirement for retesting products that already meet international standards
--harmonise labels and certification periods with international norms
Two other programmes—Communication Security Certification Scheme (ComSec) and the Mandatory Testing and Certification of Telecom Equipment (MTCTE)—have also drawn flak in the report.
Under ComSec, since 2023, telecom equipment like routers, firewalls, and switches must undergo local security checks at designated labs in India. The US says this involves outdated standards, a limited number of approved testing labs, and in some cases, demands for proprietary details such as source code.
MTCTE, which began in 2019, was expanded in 2021 to cover 175 telecom products. This requires all such gear to be tested within India, regardless of whether it has already passed internationally accepted safety checks.
The US has raised this issue not just bilaterally through trade talks, but also at the World Trade Organization’s Technical Barriers to Trade Committee.
What the US seems to be pushing for is a more globally integrated system—where if a product or service is cleared in one major market, it shouldn’t have to go through the wringer all over again in India.
There’s also a broader ask: for India to join international agreements like the Common Criteria Recognition Arrangement, which would allow mutual recognition of security certifications across borders.