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.
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.
According to the Special 301 report, the following were the concerns related to India.
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.
Currently, 26 trading partners of the United States are listed on the Special 301 list.