The United States Trade Representative has retained India on its Priority Watch List for intellectual property concerns, citing ongoing issues with IP enforcement.
The USTR's 2026 Special 301 Report also placed Chile, China, Indonesia, Russia, and Venezuela on the priority watch list.
India's placement on the list is due to long delays in receiving patents, IP enforcement in sectors like pharma, the proliferation of counterfeit goods, and online piracy.
While India has taken steps to improve IP Office operations and procedures, the report argues that overall IP enforcement remains inadequate.
The Special 301 process is an administrative review used by the U.S. as a pressure tool and does not impose immediate penalties.
The USTR has also designated specific physical markets in India and an e-commerce firm on its list of Notorious Markets, which engage in violations of intellectual property and the sale of counterfeit goods.
The report notes India's efforts to improve IP regulation and enforcement, including the establishment of additional Intellectual Property Divisions at Indian High Courts and the notification of Geographical Indication rules.
