Sources: 

The U.S. Trade Representative's (USTR) latest report reinforces India’s position on the 2026 priority watch list due to ongoing issues with intellectual property (IP) rights protection and enforcement. The report emphasizes persistent challenges such as
high import duties on IP-intensive products, patent system delays, and
weak enforcement against piracy and counterfeiting.
India is recognized as one of the world’s most challenging major economies in terms of IP protection. While progress has been noted, significant concerns remain. The U.S. cited
legal process delays in trademark and copyright cases and highlighted the impact of the Indian Patents Act’s Section 3(d) on pharmaceutical innovation.
“Despite India’s justifications of limiting IP protections as a way to promote access to technologies, India maintains high customs duties directed to IP-intensive products such as information and communications technology (ICT) products, solar energy equipment, medical devices, pharmaceuticals, and capital goods,” the report stated.
Vietnam also faces scrutiny, with the USTR noting that its
inactions are harming industries reliant on IP. The report calls for continued engagement with India through
Bilateral Trade Agreement negotiations and the
TPF’s Intellectual Property Working Group in addressing these IP-related issues. As U.S. Ambassador Jamieson Greer stated, “Using all the enforcement tools we have to address unfair trade practices is a top priority.”
Sources: 

The U.S. has retained India on its 2026 priority watch list for intellectual property rights alongside Vietnam, flagging ongoing concerns over inadequate enforcement, high import duties, and delays in legal processes. Other countries on the list include China and Russia, noted for their IP-related challenges.