The February 2026 US-India trade framework was celebrated as a breakthrough — and rightly so. Cutting reciprocal tariffs to 18% and setting the stage for a full Bilateral Trade Agreement under the "Mission 500" banner marked a genuine inflection point in the relationship. But for the over 400 U.S. companies that AmCham India represents on the ground, the conversation has always extended well beyond headline tariff numbers. The barriers that slow business, raise costs, and create uncertainty are often the ones that don't make the front page.
The USTR's Candid Assessment
The US Trade Representative's 2026 National Trade Estimate (NTE) Report, released in March, offered a frank audit of the obstacles American businesses continue to encounter in India. The picture is nuanced: India has made meaningful progress, reducing applied tariffs on lifesaving medicines, EV battery components, critical minerals, and electronic parts in its FY26 budget. But the report also catalogues a range of non-tariff barriers that persist — and in some cases deepen.
Chief among them are mandatory Quality Control Orders (QCOs), import licensing requirements, customs-related hurdles, domestic testing and certification mandates, and price controls on medical devices. The report noted that the unpredictable and opaque application of quantitative restrictions continues to impede US exporters' ability to reliably access the Indian market — a concern AmCham member companies have long raised through formal representations to the Ministry of Commerce and DPIIT.
Digital Trade: A New Frontier of Friction
In digital trade, the barriers are evolving faster than the regulations designed to address them. The USTR flagged India's data localisation rules for payment service suppliers and banks, noting that restrictions on cross-border data flows impede fraud detection and global security operations for US financial firms. India's Unified Payments Interface (UPI) ecosystem — a world-class payments infrastructure by most measures — was also cited for policies that limit foreign firms' ability to compete on equal footing with domestic players.
For US technology companies, these are not abstract policy concerns. They translate directly into higher compliance costs, slower product deployment, and reduced ability to serve Indian customers with the same quality of service available in other markets. AmCham India engages regularly with MeitY, DPIIT, and NITI Aayog to advocate for digital frameworks that align Indian regulations with global standards while enabling secure and seamless data flows.
Healthcare and Manufacturing: Where Barriers Have Real Consequences
In healthcare, the stakes are particularly high. As GE HealthCare's Chaitanya Sarawate, Vice Chairman of AmCham India, noted at the Annual Leadership Summit: India remains import-dependent, with 75% of medical products still coming from overseas. Price controls on medical devices and complex import licensing processes constrain US companies' ability to invest in local manufacturing at scale — the very outcome both governments say they want.
AmCham's Advocacy Agenda
AmCham India's approach has always been to engage constructively. Through its annual Door Knock Delegation to Washington — where 22 delegates engaged over 33 government departments and 14 Senators and Representatives in 2025 — and through sustained policy roundtables and budget consultations in New Delhi, AmCham channels member-company insights into actionable advocacy.
The tariff deal was a necessary first step. But for US companies to invest deeper, build more, and stay longer in India, the hidden barriers must come down too. That is the work AmCham India does every day.
AmCham India is the apex chamber of U.S. industry in India, representing over 400 American companies. To engage with our policy advocacy agenda, visit amchamindia.com.