A United States government report has raised concerns over India’s digital regulations, stating that content takedown orders issued to American social media companies appear to be “politically motivated”.
The findings are part of the 2026 National Trade Estimate released by the Office of the United States Trade Representative and submitted to US President Donald Trump and the US Congress on March 31.
The report identifies India’s content regulation framework, internet shutdowns and data protection rules as potential non tariff trade barriers affecting US companies.
Concerns over IT Rules and takedown requests
The report highlights challenges faced by US firms under India’s Information Technology Rules 2021, pointing to “impractical compliance deadlines and takedown protocols”.
It noted that since 2021, US companies have received an increasing number of requests to remove content and user accounts “related to issues that appear politically motivated”.
The criticism comes amid a recent rise in takedown orders targeting social media platforms such as X, Instagram, Facebook and YouTube, including content by journalists, satirists and political commentators.
Many of these orders are issued under Section 69A of the IT Act, which allows the government to block online content in the interest of national security and public order.
Internet shutdowns impact digital trade
The report also flagged India’s frequent use of internet shutdowns, saying they restrict access to information, disrupt services and affect business operations.
“These shutdowns undermine a free and open Internet and impede trade in the digital economy,” the report said.
India has consistently recorded among the highest number of internet shutdowns globally, with authorities often citing security and law and order concerns.
Data protection rules raise business concerns
The US report also raised issues with India’s Digital Personal Data Protection framework, saying it could impose “burdensome requirements” on companies and allow the government to restrict cross border data flows.
It warned that such rules may affect operations of foreign firms, including US credit bureaus, by limiting access to financial data.
Government defends regulations
Indian officials have defended the rules, arguing that they are necessary to maintain social stability and curb emerging threats like misinformation and AI generated deepfakes.
Union Minister Ashwini Vaishnaw recently said that increased regulation is a “necessary response” to the growing spread of fake content online.
“I think it’s important that we protect our social fabric more than commercial interests,” a government official said, responding to the report.
Part of broader trade tensions
The report comes amid ongoing trade negotiations between India and the US, with digital regulations emerging as a key point of contention.
While the US has flagged these measures as barriers to trade, policy experts note that such reports reflect Washington’s commercial interests and may not fully account for India’s regulatory priorities.
