US Special 301 Report 2025 : India retained in Priority Watch list

The United States has retained India in the Priority Watch List category of the 2025 Special 301 list for its failure to provide adequate and effective protection and enforcement of intellectual property (IP) rights on American goods and services. 

26 trading partners of the United States of America including India were identified as countries of concern where there was inadequate protection of the intellectual property rights of the American goods and services.

About Special 301 Report 

The Office of the United States Trade Representative (USTR) under the Trade Act of 1974 has to  prepare an annual report for the United States Congress on the status of protection of intellectual property rights on American goods in the world.

The USTR puts the country on the Priority Watch List and the Watch List. The countries in which the USTR feels there is the most serious violation of intellectual property rights are put in the Priority Watch List. 

Under Section 301 of the Trade Act of 1974, the USTR investigated those countries that had been included in the Priority Watch List and Watch List.

Why was India put on the Priority Watch List? 

According to the Special 301 report, the following were the concerns related to India.

• Potential threat of patent revocation granted to the American companies under the Indian Patents Act, 
• Delay in granting patents on goods and services with a long waiting period,
• High customs duties on IP-intensive products like information and communications technology (ICT) products, solar energy equipment, medical devices, etc.
• Weak enforcement of IP by law enforcement agencies in India,
• Lack of familiarity with IP-specific investigation techniques, the continued absence of coordination among India’s many national- and state-level law enforcement agencies.

Consequences of India being in Special 301

If India does not take steps to address the US concern, then the United States government can take appropriate action like imposing higher tariffs on india goods and services, investigate Indian trade practices and take more retaliatory measures. 

It can take India to the World Trade Organisation (WTO) Dispute Settlement Mechanism for its alleged unfair IP-related practices.

Countries in the 2025 Special 301 List 

Currently, 26 trading partners of the United States are listed on the Special 301 list.

• Countries under the Priority Watch list are China, India, Indonesia, Mexico, Argentina, Chile, Russia, and Venezuela.
• Countries under the Watch list: Algeria, Egypt, Barbados, Belarus, Paraguay, Türkiye, Bolivia, Brazil, Bulgaria, Canada, Colombia, Ecuador, Guatemala, Pakistan, Peru, Thailand, Trinidad and Tobago, and Vietnam.