US flags India's UPI as trade barrier
What's the story
The US has flagged India's Unified Payments Interface (UPI) and data localization rules as trade barriers. The concerns were raised in the 2026 National Trade Estimate Report on Foreign Trade Barriers by the US Trade Representative (USTR). The report also highlighted other issues like India's preference for domestic satellites for direct-to-home services, high tariffs on agricultural products, and internet shutdowns.
Trade barriers
UPI ecosystem limits American firms' participation
The USTR report noted that the enforcement of India's UPI ecosystem on American companies limits their trade participation. It said policies of the National Payments Corporation of India (NPCI) favor domestic players over foreign firms. The data localization norms for payment service suppliers and banks were also flagged as they restrict companies from detecting fraud and ensuring security across global networks.
Additional concerns
US raises concerns over India's localized internet shutdowns
The USTR report also flagged localized internet shutdowns in India, impacting global firms. These disruptions have affected digital services, e-commerce, and business continuity for foreign firms. Further, the US has raised concerns over India's tariff structure, especially high tariffs on agricultural products along with additional surcharges and Goods and Services Tax (GST) on imports.
Regulatory challenges
Other non-tariff barriers affecting American businesses
The USTR report also flagged non-tariff barriers affecting American businesses. These include regulatory and operational restrictions in insurance, financial services, telecommunications, and satellite communications. Other concerns include import licensing requirements, customs-related hurdles, quality control orders, price controls, and limitations in government procurement processes. The report also flagged constraints in services like satellite communication indicating broader regulatory complexities impacting foreign firms.
Future actions
USTR Greer outlines Washington's intent to address trade barriers
In a statement accompanying the report, USTR Jamieson Greer said the administration plans to continue addressing what it described as unfair trade practices. The US intends to build on recent progress to protect American workers and businesses. The report also outlined Washington's intent to convert existing framework arrangements into legally binding and enforceable agreements requiring trading partners to significantly reduce both tariff and non-tariff barriers on US exports.