USTR Report Flags India’s Satellite Policies & Internet Shutdowns As Trade Barriers

New Delhi, Apr 1 (KNN) The United States has raised concerns over certain Indian policies, including the preference for domestic satellites in direct-to-home (DTH) television services and instances of localised internet shutdowns, describing them as barriers to foreign trade.

In its ‘2026 National Trade Estimate Report’, released by the Office of the United States Trade Representative (USTR), the US noted that such measures could affect digital trade and market access for foreign firms.

Impact on Digital Economy

The report highlighted that localised internet shutdowns restrict access to information and services, disrupt commercial operations, and may hinder the functioning of a free and open digital economy. It added that the US is closely monitoring the impact of these developments on trade and investment, particularly in services exports.

It also flagged a rise in content takedown requests directed at American firms since 2021, some of which were described as appearing “politically motivated,” PTI reported.

Satellite Policy Under Scrutiny

On satellite services, the report pointed out that India’s Ministry of Information and Broadcasting (MIB) prefers the use of domestic satellite capacity for DTH services. 

"In practice, DTH licensees have not been permitted to contract directly with foreign satellite operators and have encountered procedural delays when they have sought to do so," the report said.

It added, DTH operators are required to route procurement through Indian Space Research Organisation’s (ISROs) commercial arm, Antrix, and can access foreign satellite capacity only if domestic capacity is unavailable.

Even in such cases, foreign operators must supply capacity to Antrix, which then resells it to end-users, often with an added surcharge. According to the report, this system creates procedural hurdles for foreign satellite service providers.

The US has urged India to adopt a more open satellite policy to enhance competition and allow companies greater flexibility in choosing service providers.

New Telecom Security Rules

The report also flagged new security instructions issued by the Department of Telecommunications requiring satcom providers to enable real-time interception, block government-specified websites and users, restrict services in sensitive areas, and route all Indian user traffic and DNS (Domain Name System) resolution through facilities located within India.

"Additionally, satcom providers must commit to not transferring or decrypting Indian user data outside the country and submit a phased plan to source at least 20 per cent of their ground infrastructure in India within five years of commercial launch," the report noted.

The findings reflect ongoing trade policy differences between the two countries, particularly in areas related to digital regulation, data governance, and market access for foreign technology and satellite service providers.

(KNN Bureau)