In its 2026 National Trade Estimate Report on Foreign Trade Barriers, the US Trade Representative (USTR) also cited high tariffs, particularly on agriculture products, surcharges and goods and services tax on imports. “On February 6, 2026, the US and India issued a joint statement on a framework for an interim agreement regarding reciprocal and mutually beneficial trade. Both sides will continue to work toward finalising the interim agreement,” it said.
The report listed restrictions faced by American businesses in financial services, insurance, telecom, satellite communication, import licensing and restrictions, customs barriers, price control, quality control orders, government procurement and other services like satellite communication. Since 2021, American firms have been subject to an increasing number of takedown requests for content and user accounts related to issues that appear “politically motivated”, it claimed.
Agri-Dairy, GM
“The US government continued to press the Indian government, including through the TPF (Trade Policy Forum), to provide greater access to the Indian dairy market,” the report said, adding that local feed companies, along with the US government, continue to advocate that dried distillers’ grains (DDGS) be exempted from further regulatory requirements. DDGS are a processed product and pose no risk to the environment, it said.
“As of December 31, 2025, India had not approved the import of US DDGS,” the USTR said.