High Duties, Patent Gaps Land India on US IP Watch List Again
New Delhi | May 2, 2025 — India has once again been placed on the US IP Watch List, according to the latest Special 301 Report released by the Office of the United States Trade Representative (USTR). The report highlights ongoing concerns about India’s intellectual property (IP) protection framework, especially in areas related to patent enforcement and high import duties on IP-intensive products.
This marks the seventh consecutive year that India has appeared on the US IP Watch List, signaling Washington’s dissatisfaction with the country’s efforts to align with international IP norms. The designation places India among the world’s most challenging major economies when it comes to protecting and enforcing intellectual property rights.
US Flags Long-Standing Patent Issues
The USTR report pointed out that while India has made efforts to strengthen public awareness and improve some administrative procedures, critical concerns persist—particularly around patent revocations, vague patentability standards, and delays in granting patents.
“India remains on the US IP Watch List in 2025 due to its inadequate progress in addressing long-standing issues,” the report stated. It further added that excessive procedural hurdles and discretionary application of the Indian Patents Act continue to deter foreign innovation and investment.
High Import Duties on IP-Intensive Goods
In addition to weak enforcement, the US also took issue with India’s high customs duties on products that are heavily reliant on intellectual property. These include information and communications technology (ICT) hardware, pharmaceuticals, medical equipment, and renewable energy components.
According to the report, such trade barriers contradict the spirit of fair competition and disproportionately affect companies that invest heavily in patents and R&D. The US IP Watch List explicitly names these policies as deterrents to market entry and innovation.
India’s Response: Access Over Exclusivity
India has consistently defended its patent policies, arguing that balancing public access with IP protections is vital, particularly in areas like affordable healthcare and climate solutions. Indian authorities maintain that the current IP regime is compliant with TRIPS (Trade-Related Aspects of Intellectual Property Rights) obligations under the World Trade Organization (WTO).
However, the USTR remains unconvinced. The US IP Watch List emphasized that companies continue to face challenges due to legal uncertainties and long wait times for patent approval. “These issues not only impact American companies but also hinder overall innovation in India’s domestic market,” the report noted.
A Diplomatic Flashpoint
The US IP Watch List has become a recurring source of tension between New Delhi and Washington, even as the two nations deepen trade and strategic ties. While the US acknowledges India’s efforts through forums like the US-India Trade Policy Forum, it argues that tangible improvements in enforcement and legal clarity are still lacking.
Eight countries—including India, China, Indonesia, and Russia—have been placed on the US IP Watch List in the 2025 report. An additional 25 countries have been listed for monitoring, including Pakistan and Turkey.
Implications for Businesses
Being listed on the US IP Watch List sends a strong signal to multinational corporations and foreign investors. Patent-reliant industries, especially in pharmaceuticals, software, and electronics, may view India as a higher-risk environment for innovation and product launches.
Experts warn that continued inclusion on the US IP Watch List could damage India’s global reputation as a destination for cutting-edge manufacturing and technology. At a time when India is trying to attract global supply chains and position itself as an alternative to China, such reports could undercut those ambitions.
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