The Indian government has subjected several American companies to an “increasing number of takedown requests” since 2021 for content and user accounts online related to matters that appear “politically motivated”, a United States government report has said.

The report, titled the 2026 National Trade Estimate Report on Foreign Trade Barriers and released by the Office of the United States Trade Representative, highlighted significant foreign barriers to US exports, foreign direct investment and electronic commerce in several countries.

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On laws about the digital ecosystem, the report noted that the Indian government had notified the Information Technology Intermediary Guidelines and Digital Media Ethics Code Rules in February 2021.

The rules oversee social media, streaming platforms and digital news.

The report said that the IT rules impose several requirements that US stakeholders have identified as “concerning”.

“For example, the IT rules impose personal criminal liability on individual employees in cases where a firm is not in compliance with the rules,” it said. “The IT rules also include imposition of impractical compliance deadlines and take-down protocols.”

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The report noted that the Indian government, in October 2025, amended the IT rules to define the authorities that can seek the removal of content posted online. Its earlier version had said that any “appropriate government or its agency” can direct social media platforms to take down content.

According to the amended rules, social media platforms can be directed to remove content or block its access through an order of a court of competent jurisdiction or through an intimation by a government official not below the rank of joint secretary or director.

If the take-down notice is from the police, it must be issued by an officer not below the rank of deputy inspector general. Additionally, such notices have to be “a reasoned intimation, in writing”.

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Data restrictions

The report also noted that Prime Minister Narendra Modi signed the Digital Personal Data Protection Act in August 2023, establishing a “data privacy regime” in India.

In November 2025, the Indian government notified the Digital Personal Data Protection Rules, bringing into effect the Digital Personal Data Protection Act. The rules outline how personal data is to be collected, processed and protected by both the state and private entities.

The report said that the rules impose “potentially burdensome” requirements on data fiduciaries and require disclosures of personal data to the Indian government. The rules also permit the restriction of cross-border data transfers to a specific country if the Indian government provides appropriate notification on it, it added.

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Widening ambit of censorship

The report came against the backdrop of the Indian government tightening its control over the internet.

On Monday, the Bharatiya Janata Party-led government at the Centre issued a proposal to send takedown notices to independent news creators for their content on platforms under a draft amendment to the IT rules.

The draft amendments permit the Ministry of Information and Broadcasting to recommend issuing blocking orders and requiring creators to apologise or make changes to the content if they are found guilty of grievances received by an inter-departmental committee.

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In February, the Indian government also directed social media platforms to remove artificial intelligence-generated and altered content, including deepfake videos, within three hours of it being flagged by a competent authority or the courts.

Deepfakes are techniques to manipulate audio and video content with the help of artificial intelligence software to show people saying or doing things that they never said or did. The content is made to appear as realistic as possible and is often used with malicious intent.

In December, The Indian Express reported that the Union Ministry of Home Affairs had issued 91 takedown notices to social media platform X since March 2024 for over 1,100 URLs allegedly violating legal provisions.

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More than half of these URLs, or 566, were flagged for “disturbing public order”, notices reviewed by the newspaper showed. This was followed by 124 for targeting political and public figures.

Earlier in March, X told the Ministry of Electronics and Information Technology that recent orders to block profiles “excessively and disproportionately restrict the account holder’s rights”. It added that this is concerning “as the account holder will be unable to use X in India permanently”.

The remarks were made in an objection letter written by X to the ministry on March 19, urging it to review an order directing the platform to block 12 accounts, including a parody account “Dr Nimo Yadav”.

The report also flagged several barriers that US companies face, including those pertaining to tariffs, orders on quality control and subsidies, among others.