The US has placed India on its 'Priority Watch List', citing concerns over India's intellectual property rights (IPR) protection and enforcement.
The United States Trade Representative (USTR), in its latest report, dubbed India "one of the most challenging major economies when it comes to the protection and enforcement of intellectual property (IP)".
The report even called India the world's most "challenging major economies" when it comes to IP enforcement.
It evaluates over 100 trading partners and identifies those that don't meet the US standards for protecting intellectual property rights.
India and the US are currently negotiating a bilateral trade deal which aimed at increasing two-way trade to $500 billion by 2030.
The pact is also expected to help the US reduce its trade deficit with India, which stood at $41.18 billion in 2024–25.