US-India Trade Tensions: Satellite Preferences and Internet Shutdowns Spotlighted

The US has flagged India's domestic satellite preference for DTH services and localised internet shutdowns as barriers to foreign trade in its 2026 report. These practices are seen as limiting market access for foreign companies and impeding the digital economy, urging India to pursue a more open policy.

The United States has identified India's preference for domestic satellites in direct-to-home (DTH) television services and the frequent localized internet shutdowns as significant barriers to foreign trade, according to the 2026 National Trade Estimate Report released by the U.S. Trade Representative's office.

Released on Tuesday, the report highlights that since 2021, American firms have encountered increasing politically motivated takedown requests. This, coupled with internet shutdowns, restricts access to information and services, thereby affecting commercial operations and undermining the digital economy.

The report also notes that India's Ministry of Information and Broadcasting insists on using Indian satellites for DTH services, creating procedural delays for direct engagement with foreign satellite operators. The U.S. encourages India to adopt an ''open skies'' policy for improved market access and flexibility.

(With inputs from agencies.)