USTR Raises Concerns Over Digital Restrictions and Market Access
The United States has identified India’s preference for domestic satellite usage in direct-to-home television services and its practice of localized internet shutdowns as barriers to foreign trade, according to the 2026 National Trade Estimate Report on Foreign Trade Barriers.Released by the Office of the US Trade Representative, the report also highlighted concerns over increasing takedown requests directed at American firms since 2021. These requests, involving content and user accounts, were noted to be linked to issues that appear politically motivated.
Internet Shutdowns Seen Impacting Digital Trade
The report stated that localized internet shutdowns in India restrict access to information and services, disrupting commercial operations. It added that such actions undermine the concept of a free and open internet and hinder trade in the digital economy.The United States said it will continue to monitor how these developments affect its trade and investment interests, particularly in services exports.
Restrictions in Satellite Services Market Highlighted
On satellite services, the report pointed out that India’s Ministry of Information and Broadcasting maintains a preference for domestic satellites for DTH television services.It noted that DTH licensees are not permitted to directly contract with foreign satellite operators and often face procedural delays when attempting to do so.
Under the current framework, licensees are required to procure satellite capacity through Antrix, the commercial arm of the Indian Space Research Organisation. Foreign satellite capacity is allowed only if domestic capacity is unavailable.
Even in such cases, foreign operators must sell capacity to ISRO, which then resells it to end-users with an added surcharge.
US Pushes for ‘Open Skies’ Policy
The report stated that the United States continues to encourage India to adopt an open skies satellite policy. Such a policy would allow businesses to select satellite providers based on their requirements and improve market access for foreign service providers.New Telecom Security Rules Also Under Scrutiny
The report also flagged recent security directives issued by India’s Department of Telecommunications for satellite communication providers.These rules require companies to enable real-time interception, block government-specified websites and users, and restrict services in sensitive areas. Providers must also ensure that all Indian user traffic and domain name resolution are routed through infrastructure located within India.
Additional requirements include registering and verifying user terminals, sharing detailed user and device data with law enforcement, implementing geo-fencing in border areas, and preventing unauthorized access or location spoofing.
The report further noted that companies must not transfer or decrypt Indian user data outside the country. They are also required to submit a phased plan to source at least 20 percent of their ground infrastructure locally within five years of starting commercial operations.
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