India and the United States are continuing virtual discussions on non-tariff barriers, digital trade and regulatory issues as negotiations progress on their proposed bilateral trade agreement, Moneycontrol
reported.
According to the report, people familiar with the talks said India may consider concessions to Washington in certain areas of digital trade, although discussions remain ongoing and no decision has been finalised.
Digital trade and data rules under discussion
The talks reportedly include India's data-governance framework and regulations governing market access for digital services. These areas are particularly important for US technology companies operating in India.
The discussions follow the broader trade framework agreed by both countries in February, which identified several non-tariff barriers for resolution.
These included concerns over medical device regulations, import licensing for information and communication technology products such as laptops, tablets, computers and servers, as well as standards, testing procedures and agricultural and food products.
Digital trade was also included in the framework. India and the US agreed to address practices considered discriminatory or burdensome and explore bilateral rules covering digital commerce.
The framework also mentioned cross-border data flows and data localisation, while acknowledging that both countries would retain their domestic laws and regulations.
US raises concerns over Indian trade barriers
Washington has previously criticised India's regulatory framework and non-tariff barriers. The US Trade Representative's 2026 National Trade Estimate report highlighted concerns involving ICT imports, digital regulations and market access for American businesses.
Similar issues were raised during discussions at the World Trade Organization's Trade Policy Review of India in July.
At the same time, India has recently accepted broader digital-trade commitments in its trade agreement with the European Union. The pact includes provisions covering electronic transactions, paperless trade, e-invoicing, e-contracts, cybersecurity, online consumer protection, source-code protection and cross-border data flows.
The February India-US framework envisaged New Delhi reducing or removing tariffs on several US industrial and agricultural products. Washington had agreed to an 18% reciprocal tariff rate for qualifying Indian goods, with additional relief linked to successful completion of the agreement.
