The United States has flagged India’s satellite regulations and internet restrictions as potential trade barriers, according to recent reports. The concerns were raised in a bilateral trade discussion, where US officials highlighted how India’s rules for Direct-to-Home (DTH) services and internet curbs could disadvantage foreign companies.
India’s satellite policies require foreign firms to meet stringent localization and data storage requirements, which the US argues create unfair market conditions. Analysts suggest these regulations are part of India’s broader strategy to protect domestic industries and ensure data sovereignty. “The rules are seen as a way to level the playing field for local players,” said an industry insider who requested anonymity.
The US Trade Representative (USTR) has reportedly included these issues in its annual trade barriers report, signaling potential friction ahead. A senior official familiar with the matter stated, “These policies could hinder US investments in India’s growing digital economy.”
Experts warn that escalating tensions over satellite and internet regulations could affect broader trade relations. “If unresolved, this could lead to retaliatory measures or stalled negotiations in other sectors,” noted a trade policy analyst.