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The US items trade deficit with India elevated 27 per cent to $58.2 billion in 2025 from $45.8 billion the earlier yr whereas its companies trade steadiness changed into a $5.1 billion deficit in comparison with a surplus of $102 million in 2024, per the US Trade Representative’s (USTR) 2026 National Trade Estimate (NTE) report on international trade barriers.
The report identifies vital trade barriers in India, together with excessive tariffs on a number of farm objects, cars and alcohol, non-tariff barriers (NTBs) such as import restrictions and licences, digital trade restrictions, and unpredictable regulatory modifications.
“India maintains high applied tariffs on a wide range of goods, including vegetable oils (as high as 45 per cent); apples, corn, and motorcycles (50 per cent); automobiles and flowers (60 per cent); natural rubber (70 per cent); coffee, raisins, and walnuts (100 per cent); and alcoholic beverages (150 per cent). In addition, India maintains very high basic customs duties (in some cases exceeding 20 perc ent) on drug formulations, including life-saving drugs and finished medicines listed on the WHO’s list of essential medicines, the report pointed out. High tariff rates also present a significant barrier to trade in other agricultural goods, it added.
Various NTBs
The report criticised various NTBs in India including import bans, restrictions, licensing requirements on certain goods, mandatory Quality Control Orders (QCOs), customs barriers, price control on medical devices, and mandatory domestic testing and certification requirements for equipment.
It noted that while imports of most pulses are now allowed without any quantitative restrictions, the “opaque and unpredictable” nature of India’s software of quantitative restrictions has affected the power of US exporters to entry the market. The US, alongside with different buying and selling companions, continues to boost India’s software of quantitative restrictions on the WTO, it stated.
US stakeholders’ concern on import licences for remanufactured items was highlighted. “US stakeholders noted excessive details are required in the license application, quantity limitations are set for specific parts, and long delays occur between the submission of an application and the granting of a license,” it stated.
On QCOs, it stated these orders goal uncooked supplies and intermediate items in addition to completed merchandise, which might disrupt provide chains. The report expressed issues on the Bureau of Indian Standards not absolutely aligning with worldwide requirements.
“The US also has concerns that US stakeholders were not consulted during the development of many of these standards,” it stated.
Mandatory home testing and certification necessities for telecommunication tools and ICT items in India was additionally recognized as an issue. “The US government has recommended that the Indian government recognise internationally accredited labs, harmonise labeling requirements with global practices, harmonise the validity period of test reports and certification, eliminate retesting requirements, and, for the ComSec (communications security), remove all source code disclosure requirements and streamline the disclosure of testing information,” the report acknowledged.
On electronics cost, the USTR report asserted that Washington continued to boost issues referring to casual and formal insurance policies with respect to digital funds companies that seem to favor Indian home suppliers over international suppliers, making a non-level enjoying subject.
Making a case towards monetary companies knowledge localisation, the report stated native knowledge storage necessities hamper the power of service suppliers to detect fraud and make sure the safety of world networks.
Published on April 1, 2026