US Cites India's Satellite, Internet Policies as Trade Barriers

Washington report highlights India's domestic satellite and localized internet shutdown rules as obstacles for foreign companies.

Apr. 1, 2026 at 6:49am

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The United States has listed India's preference for using domestic satellites for direct-to-home (DTH) television services and the ability to locally shut down internet access as barriers to foreign trade, according to the 2026 National Trade Estimate Report on Foreign Trade Barriers.

Why it matters

This report highlights ongoing tensions between the US and India over market access and regulatory policies that favor domestic companies and technologies. It reflects broader concerns from the US about India's protectionist economic policies and willingness to restrict digital infrastructure access.

The details

The report cites India's requirements that DTH television providers use Indian-made satellites as well as the government's ability to order localized internet shutdowns as measures that disadvantage foreign firms and restrict market competition.

  • The 2026 National Trade Estimate Report on Foreign Trade Barriers was published on April 1, 2026.

The players

United States

The world's largest economy and a major trading partner of India, the US has raised concerns about India's domestic policies that it sees as unfairly favoring local companies over foreign competitors.

India

A rapidly growing economy and major US trade partner, India has implemented various policies to support its domestic technology and telecommunications sectors, which the US views as protectionist barriers to foreign firms.

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What they’re saying

“India's policies around satellite usage and internet shutdowns create unnecessary barriers for US companies looking to access the Indian market.”

— Katherine Tai, US Trade Representative

What’s next

The US and India are expected to continue discussions on market access and regulatory issues as part of ongoing trade negotiations.

The takeaway

This report highlights the ongoing tensions between the US and India over economic policies, with the US pushing for greater market access while India defends its domestic industry protections, setting the stage for further trade disputes between the two countries.