New Delhi: A United States government report has said that takedown orders issued to US social media firms by Indian authorities appear to be “politically motivated”, in what Washington has identified as non-tariff trade barriers, along with frequent internet shutdowns. On March 31, the Office of the United States Trade Representative submitted the 2026 National Trade Estimate to US President Donald Trump and the US Congress. The Estimate details foreign trade barriers facing US exports. It aims to outline “how the Trump Administration is addressing these non-reciprocal practices to ensure a playing field for American workers”. The report also mentions India’s use of domestic satellites for direct-to-home (DTH) television services, its digital services taxation regime and international roaming arrangements as barriers to trade with India.TakedownsThe report highlights US companies’ struggles vis-a-vis the 2021 Information Technology (Intermediary Guidelines and Digital Media Ethics Code) Rules, 2021. It says:“The IT Rules also include imposition of impractical compliance deadlines and take-down protocols. Since 2021, U.S. firms have been subject to an increasing number of takedown requests for content and user accounts related to issues that appear politically motivated.”The report’s spotlight on the IT Rules comes at a time when Indian online spaces are rife with criticism of the Narendra Modi government’s takedown orders. In the past few weeks, news of takedown orders sent by government authorities to intermediaries such as social media sites like X, Instagram and Facebook, and video aggregators like YouTube, have been a staple.The orders have targeted news outlets, satirists, comedians, cartoonists and political commentators. Some takedown orders have invoked Section 69A of the Information Technology Act, 2000 which allows the government to block public access to online information in the interest of the sovereignty, integrity of India, national security, public order, maintaining friendly relations with foreign states, or for preventing the incitement of offences.Others have invoked the Section 79(3)(b) of the IT Act, 2000, and Section 3(1)(d) of the IT rules, 2021. The former removes protection for intermediaries like X if they fail to remove or disable access to content after having been notified by a government agency. The latter mandates that online intermediaries remove or disable access to content within 36 hours of receiving “actual knowledge,” either via a court order or notification from an authorised government agency. Last month, the time for intermediaries to effect takedowns was reduced to a mere three hours.A screenshot of the US report. Source: USTR.Internet shutdownsThe report also notes that India has conducted a number of localised shutdowns of the internet in recent years, impeding an open internet. “These shutdowns restrict access to information and services, disrupting commercial operations, and thereby undermining a free and open Internet and impeding trade in the digital economy. The United States continues to monitor the impact of these events on U.S. trade and investment, including services exports,” it says.India has consistently reported the highest number of internet shutdowns globally, with state authorities citing reasons such as public safety and national security for such moves. The latest Access Now report finds that India ranked second globally with 65 instances of imposed crackdowns in 2025.Concerns over digital personal dataThe report also calls the Digital Personal Data Protection (DPDP) Rules ones which will impose “potentially burdensome requirements on data fiduciaries, and require disclosures of personal data to the Indian government.”It notes that the rules “permit the Central Government to restrict cross-border data transfers to a specific country” and that sectoral regulations could “supersede the DPDPA and DPDP Rules” if they are found to offer greater data protection.The report flags a specific concern for US credit bureaus operating in India. The DPDP Rules do not provide deemed consent for credit information companies and “allow individuals in the country to opt out of sharing financial data” with them. The report warns this “could impact CICs’ ability to operate in India, including U.S. credit bureaus.”Under Donald Trump’s second administration, the United States had imposed the highest rate of tariffs on India at 50%, last year. Half of the tariffs were deemed as so-called reciprocal tariffs, which the US had imposed at varying rates on its trade partners for having a goods trade deficit. Trump also imposed 25% on India for buying Russian oil, which he claimed fuelled the Ukraine war.According to the report, the US goods trade deficit with India stood at $58.2 billion, a 27.1% increase from 2024, with Indian imports rising by 18.9% during the same period. At the same time, the US swung from a surplus of $102 billion in 2024 to a deficit of $5.1 billion in 2025 in services trade.In February, those tariffs were subsequently struck down by the US Supreme Court, which ruled that the International Emergency Economic Powers Act did not authorise the president to impose sweeping tariffs unilaterally. Just before the US Supreme Court judgement, Trump and Modi announced a framework for a bilateral trade agreement after a phone call on February 2. Under this framework, US brought down from 50 to 18%. The final text of the trade agreement is still being negotiated.