India retains spot on U.S. IP priority watch list amid ongoing trade talks

New Delhi/ Washington

India continues to remain on the U.S. Trade Representative’s (USTR) Priority Watch List for 2025, according to the Special 301 Report released on Tuesday. The report identifies India as “one of the world’s most challenging major economies” in terms of intellectual property (IP) protection and enforcement.

The USTR cited a range of persistent IP-related concerns in India, including patent processing delays, lack of clarity in patent law interpretations, and high customs duties on IP-intensive goods.

Pharmaceutical data protection remains inadequate, and trademark counterfeiting continues to be a widespread issue. Copyright holders face rampant online piracy, while law enforcement agencies reportedly lack coordination and the technical skills necessary for IP investigations.

The report’s release comes at a sensitive time, as the U.S. administration, led by President Donald Trump, is negotiating trade agreements and reviewing tariff policies with several nations, including India. U.S. Treasury Secretary Scott Bessent recently indicated that India is likely to be among the first countries to conclude a bilateral trade agreement with the U.S. Mexico has also been moved from the regular watch list to the priority group due to unresolved concerns, many linked to the United States-Mexico-Canada Agreement (USMCA). Meanwhile, Turkmenistan was removed from the list after stakeholders reported no significant IP concerns.

This year’s Priority Watch List includes India, China, Mexico, Chile, Argentina, Indonesia, Russia, and Venezuela. The U.S. emphasized the need for these countries to resolve longstanding IP issues or face potential trade enforcement actions.