India-US Trade Deal: Digital Trade, Data Rules And Non-Tariff Barriers Under Discussion
India and the United States are continuing virtual discussions on non-tariff barriers, digital trade and regulatory issues as negotiations progress on their proposed bilateral trade agreement, Moneycontrol reported. According to the report, people familiar with the talks said India may consider concessions to Washington in certain areas of digital trade, although discussions remain ongoing and no…
India and the United States are engaged in ongoing virtual talks regarding non-tariff barriers, digital trade, and regulatory concerns as they advance their proposed bilateral trade agreement, as reported by Moneycontrol. Sources familiar with the negotiations suggest India might compromise on certain aspects of digital trade, although no final decisions have been made.
Key issues under discussion encompass India's data governance framework and rules regulating market access for digital services, which are crucial for US technology firms operating within India. Following the February agreement between both nations, which identified several non-tariff barriers for resolution, discussions now focus on medical device regulations, import licensing for information and communication technology products, standards, testing procedures, and agricultural and food products.
The talks also aim to address discriminatory or burdensome practices and explore bilateral rules for digital commerce. Both countries agreed to tackle cross-border data flows and data localisation, while acknowledging the retention of their respective domestic laws and regulations. The US has historically criticized India's regulatory framework and non-tariff barriers, with the US Trade Representative's 2026 National Trade Estimate report highlighting concerns over ICT imports, digital regulations, and market access for American businesses.
Similar issues arose during the World Trade Organization's Trade Policy Review of India in July. Meanwhile, India has recently agreed to digital-trade commitments in its trade deal with the European Union, which encompasses provisions for electronic transactions, paperless trade, e-invoicing, e-contracts, cybersecurity, online consumer protection, source code protection, and cross-border data flows.
The February India-US framework envisioned New Delhi reducing or eliminating tariffs on several US industrial and agricultural products, with Washington agreeing to a 18% reciprocal tariff rate for eligible Indian goods, contingent on the successful conclusion of the agreement.
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