US, EU flag concerns over India's trade barriers and tariff regime

The United States and European Union have issued joint criticism of India's trade practices, citing what they describe as persistent barriers limiting foreign market participation. The concerns encompass a range of measures including elevated tariff rates, quantitative control orders (QCOs) on specific product categories, and restrictions affecting digital trade flows across the subcontinent's economy.

Both trading blocs have indicated that these measures go beyond what is permissible under World Trade Organization norms and bilateral trade agreements. Officials have specifically flagged quality control orders imposed on certain imports as creating additional compliance burdens that function as de facto non-tariff barriers. The digital trade restrictions have also drawn particular attention given the growing importance of data flows to international commerce.

The criticism reflects broader trade tensions between India and major developed economies. New Delhi has traditionally maintained protective trade policies to shield domestic industries during their development phases, citing infant industry arguments. However, Western trading partners argue such measures have become increasingly difficult to justify given India's status as a major global economy.

Indian officials have not immediately responded to the latest complaints. The trade frictions come at a time when India is negotiating various bilateral and regional trade agreements, including ongoing discussions with the European Union on a comprehensive free trade partnership. The US and EU have indicated they expect substantive changes to India's trade policy framework as a condition for deepening commercial ties.