India remains on US IP watch list: Concerns linger over patents, market access

For yet another year, India has featured on the US “priority watch list” for intellectual property rights, underscoring lingering friction over patent norms, pharmaceutical policies and market access in bilateral trade ties.

The annual review, mandated under the US Trade Act, identified India among six countries — alongside China, Russia, Chile, Indonesia and Venezuela — that present the most significant challenges in ensuring adequate IP safeguards and market access for rights holders.

Persistent concerns despite reforms

The report said that while India has made “meaningful progress” in certain areas — including strengthening manpower at its IP office and improving administrative processes — long-standing issues remain unresolved.

According to the report, “India has worked to strengthen its IP regime” however, there continues to be a lack of progress on many long-standing IP concerns.

A key area of concern continues to be India’s patent regime, particularly delays in approvals and the scope of patentability under domestic law. The US has urged India to reduce patent pendency timelines and improve overall system efficiency for applicants.

The report also flagged the continued use of provisions such as Section 3(d) of the Patents Act, which restricts patenting of incremental pharmaceutical innovations — a clause aimed at preventing “evergreening” but criticised by multinational firms for limiting protections.

Tariffs, pharma rules under scrutiny

Another major sticking point is India’s tariff structure. According to the report, India maintains “high customs duties directed to IP-intensive products” including information and communications technology (ICT) goods, solar equipment, medical devices, pharmaceuticals and capital goods.

The US also raised concerns about the lack of a robust framework to protect undisclosed test data submitted for regulatory approvals in pharmaceuticals and agrochemicals — an issue frequently flagged by global drugmakers.

In addition, stakeholders have questioned whether India has an effective mechanism for early resolution of patent disputes, especially before the launch of generic or follow-on products.

Enforcement gaps remain

Despite some action against online piracy and improvements in IP office functioning, enforcement remains a weak link, the report said.

IP enforcement continues to be hampered by weak policing, limited expertise in specialised investigations, poor coordination across national and state agencies, and the absence of strong deterrent penalties, the report added.

The US also pointed to concerns around trade secret protection, including requirements for companies to disclose sensitive source code for telecom equipment certification.

Trademark counterfeiting and piracy levels were described as “problematic”, with the US urging India to join global frameworks such as the Singapore Treaty on the Law of Trademarks.

Importantly, India’s continued placement on the priority watch list does not automatically trigger trade sanctions. Instead, it signals intensified bilateral engagement.

The US said it would continue discussions with India through ongoing trade negotiations and institutional mechanisms such as the Trade Policy Forum’s IP Working Group.

“The United States intends to continue to engage with India on IP matters,” the report noted.