India has been listed on the United States Trade Representative's (USTR) Priority Watch List for 2025 once again, following strong concerns about the state of the country's intellectual property (IP) protection and enforcement. This was announced through the release of the USTR annual Special 301 Report on Tuesday.

According to the report, India is now among "the World's most challenging major economies" with regards to intellectual property matters. The major problem areas include very long patent processing timelines, vague interpretations of the India Patents Act and inadequate enforcement mechanisms for the protection of IP. 

As per the report, India's intellectual property enforcement is weak. There are major drawbacks in the enforcement of India's IP laws. The very high customs duties on intellectual property-heavy products have been cited as a hindrance. Protection of medical data has been termed inapt. It raises questions about the long delay in the disposal of trademark opposition matters and the rampant counterfeiting of trademarks. Copyright holders are also alarmed by relentless digital piracy, while there were also problems with the law enforcement agencies being incapable of coordinating or having an effective investigative arsenal towards IP violations.

Mexico has been moved from the Watch List to the Priority Watch List because of unresolved trademark counterfeiting and pharmaceutical IP protection issues. The USTR mentioned that these issues are mostly related to Mexico's obligations under the United States-Mexico-Canada Agreement (USMCA) and Mexico remained on the Watch List in the lower tier for several years.

Turkmenistan is deleted from the main Watch List altogether. The report adds that there have been no major stakeholder concerns regarding the protection or enforcement of IP rights raised during the past years.

The Priority Watch List this year lists eight countries, namely India, Mexico, China, Chile, Argentina, Indonesia, Russia and Venezuela. An additional 18 nations are on the general Watch List, including Vietnam, Brazil, Algeria, Pakistan, Turkey, and Canada, among others.

According to USTR, the placement of these countries was considered after a very lengthy review of 100 trading partners or more, including data collection, input from stakeholders, and an analysis of enforcement actions.

This report comes in the wake of negotiations on trade following the announcement of new tariff measures by President Donald Trump on April 2, but have been put on pause until July 8. U.S.

On Monday, U.S. Treasury Secretary Scott Bessent announced negotiations were underway with 15 to 18 major trading partners concerning tariffs and non-tariff measures.

“Our trading partners must address the concerns identified in the Special 301 Report and stop those stealing the intellectual property of hard-working businesses and individuals," said U.S. Trade Representative Jamieson Greer. "This comprehensive report is a basis for the United States to take trade enforcement action against those not playing fairly,” he added.