The United States has placed India, along with China and Russia, on its "priority watchlist" of countries on its radar for alleged deficiencies and violations of intellectual property rights (IPR). Citing New Delhi's "inconsistent progress", the Special 301 Report of 2025, released by the US Trade Representative's office, called India one of the "most challenging major economies with respect to protection and enforcement of IP."
USTR's annual report lists eight countries on its "priority watch list" for deficiencies and violations of IP rights-- including India, Mexico, China, Chile, Argentina, Indonesia, Russia and Venezuela. At least 18 other countries have also been put on the watch list, including Vietnam, Brazil, Algeria, Barbados, Belarus, Bolivia, Bulgaria, Canada, Colombia, Ecuador, Egypt, Guatemala, Pakistan, Paraguay, Peru, Thailand, Trinidad and Tobago and Turkey.
What Is 'Special 301' Report
The Special 301 Report is an annual review by the US of countries on how they protect and enforce IPR. Each year, after research and analysis of more than 100 trading partners, USTR draws a list of countries that fail to address US concerns.
USTR conducts this review under Section 182 of the Trade Act of 1974, which allows America to take actions against countries that engage in unfair or discriminatory trade practices, burdening US commerce. These actions can range from imposing tariffs to investigating trade practices and even taking retaliatory measures.
Why India Is On The List
The report said that India has been retained on the list, particularly due to continuing patent issues. "Among other concerns, the potential threat of patent revocations and the procedural and discretionary invocation of patentability criteria under the Indian Patents Act impact companies across different sectors," the report said.
"Moreover, patent applicants generally continue to confront long waiting periods to receive patent grants and excessive reporting requirements. Stakeholders continue to express concerns over vagueness in the interpretation of the Indian Patents Act," it added
The report also acknowledged the actions taken by India to promote and enforce IP protection in some areas and steps taken to partially address long-standing issues with patent pre-grant opposition proceedings and cumbersome reporting requirements by notifying the Patents (Amendment) Rules, 2024.
Another issue highlighted against India in the report is the high levels of online piracy and the lack of effective enforcement. It also said India, along with China, Hong Kong, the United Arab Emirates, and Singapore, were the top countries of origin for counterfeit pharmaceuticals seized at the US border in 2024.
