USTR Terms Takedown Provisions In India's IT Rules As 'Impractical', 'Challenge' To Ease Of Doing Business

The United States Trade Representative (USTR) said that the “takedown regime” in India’s information technology sector was a significant barrier to digital trade.

The National Trade Estimate (NTE) report termed some of the compliance norms as “impractical” deadlines, which may substantially increase operational risks for global platforms.

The report said that India’s IT rules impose stringent compliance requirements on digital platforms, including obligations to remove or disable access to content within short timelines.

It said that such norms create challenges for technology companies and may impact the ease of doing business in India.

Tech giants like Google, Meta, and Microsoft are US-based companies that have a majority of their user base in India.

The report highlighted that the IT rules require intermediaries to act on government or court orders for content takedown, often within short windows.

According to the USTR, the lack of clarity and consistency in implementation could expose companies to legal risks and compliance uncertainty.

The report also pointed to provisions mandating traceability of messages and increased accountability for social media platforms.

These measures, while aimed at improving user safety and curbing misuse, have raised concerns among global firms over data privacy, encryption standards, and the potential for overreach.

However, India has maintained that its IT rules were designed to ensure a safe and accountable digital ecosystem. According to the government, regulations are necessary to address issues such as misinformation and harmful content in order to safeguard user interests.

The USTR’s observations come at a time when digital trade is emerging as a key component of bilateral economic engagement between India and the United States.

India and the US have earlier been on opposite ends of issues like taxing electronic commerce.

Industry stakeholders have cautioned that regulatory uncertainty could influence investment decisions and innovation in India’s fast-growing digital economy.

At the same time, policymakers face the challenge of balancing regulations with the need to promote a competitive market.