US, EU Criticise India’s Trade Barriers at WTO

Context

The US and European Union (EU), India’s two largest trading partners, have raised concerns over India’s growing use of tariff and non-tariff barriers during its eighth Trade Policy Review (TPR) at the World Trade Organization (WTO).
They argued that high tariffs and regulatory restrictions could undermine India’s efforts to integrate with global supply chains and benefit from greater economic openness.
The concerns cover goods, services, digital trade, investment and government procurement, highlighting the tension between domestic industrial policy and deeper global economic integration.

Area	Concerns raised
Tariffs	High import duties increase the cost of accessing the Indian market.
SPS measures	Measures relating to human, animal and plant health were described as potentially unjustified or excessive.
TBTs	Technical regulations and standards may create additional barriers for foreign exporters.
Quality Control Orders	Growing QCOs and conformity-assessment requirements can raise compliance costs, particularly where Indian standards differ from international standards.
Services & digital trade	Restrictions may limit market access for foreign service providers and digital businesses.
Local-content requirements	US raised concerns that mandatory domestic-content rules may discriminate against foreign producers and investors.
Government procurement	EU flagged narrowing access for foreign firms.
Customs	EU highlighted unpredictable and cumbersome customs procedures.
IPR & GIs	Gaps in protection of intellectual property rights and geographical indications were also flagged by the EU.

The US called for significant tariff reduction, removal of unjustified SPS and TBT measures, and fewer barriers to services and digital trade.
It also urged India to roll back regulations that discriminate against foreign exporters and investors and to strengthen transparency and regulatory predictability.
The EU particularly criticised unpredictable customs procedures and burdensome conformity-assessment requirements arising from QCOs.
According to the EU, excessive divergence from internationally accepted standards could insulate the Indian market from global competition and reverse gains made through economic integration.
The EU acknowledged that India has initiated reforms following the NITI Aayog High-Level Committee’s review of QCOs and indicated that effective implementation of its recommendations could address several concerns.

The TPR is a peer-review mechanism designed to improve transparency and understanding of members’ trade policies.
India undergoes a TPR once every five years.
The WTO Secretariat and the country under review prepare separate detailed reports covering trade policies, regulations and priorities.
Other WTO members submit written questions on tariffs, regulations and specific trade barriers, which are subsequently discussed during the review meeting.
The mechanism does not directly impose trade-policy changes; rather, it promotes transparency, predictability and accountability in the international trading system.

India needs to distinguish between legitimate regulatory measures for consumer safety, public health and strategic interests and protectionist measures that unnecessarily restrict trade.
SPS, TBT and QCO requirements should be science-based, transparent and, wherever feasible, harmonised with internationally recognised standards.
Customs procedures and conformity-assessment processes should be simplified to reduce transaction costs and improve India’s attractiveness within global value chains.
Local-content requirements and restrictions on digital and services trade need periodic review to ensure that industrial-policy objectives do not undermine competitiveness and investment.
Greater protection of IPRs and GIs and predictable access to government procurement can strengthen India’s credibility as a reliable trading partner.
The challenge for India is to balance strategic autonomy and domestic manufacturing with the need for openness, competitiveness and integration into global supply chains.