The United States has retained India on its Special 301 Priority Watch List for 2026, citing inconsistent progress in intellectual property rights protection and enforcement. The USTR report highlights concerns over India’s patent regime, including barriers faced by foreign pharmaceutical firms, delays in approvals, and gaps in data protection frameworks.The report also flags weak enforcement of copyrights and trademarks, along with high levels of counterfeiting and elevated tariffs on IP-intensive sectors. While India has taken steps to strengthen its IP ecosystem, the US maintains that progress remains uneven.The development comes amid ongoing India-US trade negotiations, where intellectual property is expected to remain a key issue.