The United States has once again placed India on its Priority Watch List for intellectual property concerns, citing ongoing enforcement gaps and challenges in patent protection.

The designation comes in the 2026 Special 301 Report released by the Office of the United States Trade Representative, which evaluates how trading partners safeguard and enforce intellectual property rights. India remains among six countries on the list, alongside China, Russia and Indonesia.

The report acknowledged steps taken by India to strengthen its IP regime, including increasing the number of examiners and raising awareness. However, it noted that progress has been uneven and challenges persist.

"India remains one of the world's most challenging major economies with respect to the protection and enforcement of IP," the report said.

Patent-related concerns remain central, with the report highlighting long approval delays, excessive reporting requirements and extended opposition procedures. It also flagged restrictions on patentable subject matter, particularly in the pharmaceutical sector, which continue to affect companies.

The absence of an effective system to protect test data for drugs and agricultural chemicals was also raised as a key issue.

The report said enforcement mechanisms remain weak due to coordination gaps among authorities and penalties that often fail to deter violations.

"India's overall IP enforcement remains inadequate," it said.

High levels of piracy and counterfeiting continue, including illegal streaming, unauthorised software use and counterfeit goods. Trademark enforcement also faces delays, with companies reporting backlogs in opposition cases and concerns over examination quality.

The lack of a dedicated trade secrets law further complicates the protection of proprietary information. Despite these concerns, the USTR noted positive steps such as amendments to patent rules in 2024 aimed at improving efficiency.