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**Right now (as of March 2026), the main "cooking" between the US and Indian governments on internet-related policies is happening inside the big bilateral trade and technology frameworks — not as a standalone "internet treaty," but deeply embedded in ongoing negotiations.**<grok:render card_id="bffb71" card_type="citation_card" type="render_inline_citation"><argument name="citation_id">0</argument></grok:render>
The big picture: Both sides want deeper digital/economic ties (more US tech investment in India, more market access for American companies), but the US is pushing hard to remove what it calls "burdensome" Indian rules on data, platforms, and digital trade. India is protecting its regulatory sovereignty while still opening doors for GPUs, data centres, and AI infrastructure.
### 1. Digital Trade Rules inside the US-India Bilateral Trade Agreement (BTA)
- In February 2026, Trump and Modi announced an **Interim Trade Agreement** framework (first tranche of the full BTA).
- Key commitment: “The United States and India commit to address discriminatory or burdensome practices and other barriers to digital trade and to set a clear pathway to achieve robust, ambitious, and mutually beneficial digital trade rules as part of the BTA.”
- India also agreed to ease non-tariff barriers on US ICT goods (import licensing, standards recognition within 6 months).
- Trade in GPUs and data-centre hardware is explicitly being ramped up.<grok:render card_id="c9ce4e" card_type="citation_card" type="render_inline_citation"><argument name="citation_id">45</argument></grok:render>
Earlier White House language about India immediately scrapping its digital services tax (equalisation levy) was quietly dropped after revision — now it’s just “negotiate rules.”
### 2. India’s IT Rules 2021 & DPDP Act/Rules 2025 are front-and-centre in the talks
US officials (in Dec 2025 trade rounds) explicitly flagged these as **non-tariff barriers**:
- **IT Rules** — strict requirements on social-media intermediaries (24×7 nodal officers, grievance redressal, urgent content takedown, heavy penalties).
- **DPDP Rules** (notified Nov 2025, full effect May 2027) — potential government power to block certain categories of personal data from leaving India (data localisation), plus strict consent and Significant Data Fiduciary obligations.
India’s position: Most differences have already been narrowed; no fresh concessions needed. Talks continue as part of the broader BTA.<grok:render card_id="091f54" card_type="citation_card" type="render_inline_citation"><argument name="citation_id">47</argument></grok:render>
### 3. ICT Working Group & Cross-Border Data Flows
The dedicated US-India ICT Working Group (latest meeting Oct 2024) keeps reaffirming:
- “Open, interoperable, reliable, and secure digital connectivity and ICT infrastructure.”
- Trustworthy cross-border data flows + data privacy cooperation (including the Global Cross-Border Privacy Rules Forum).
- Promotion of Open RAN for 5G/6G, undersea cables, and satellite systems.<grok:render card_id="da94cb" card_type="citation_card" type="render_inline_citation"><argument name="citation_id">46</argument></grok:render>
### 4. TRUST Initiative + Pax Silica Declaration (the AI/internet-infrastructure angle)
- Feb 2025: iCET was upgraded to **TRUST** (Transforming the Relationship Utilizing Strategic Technology). Central pillar = **US-India Roadmap on Accelerating AI Infrastructure** (data centres, compute, power, connectivity in India using US-origin tech).
- Feb 2026: Both countries signed the **Pax Silica Declaration** → explicit pledge for “pro-innovation regulations” and rapid build-out of “secure and trusted AI ecosystems” (basically pushing back against heavy-handed rules in favour of fast innovation and investment).<grok:render card_id="5c6d18" card_type="citation_card" type="render_inline_citation"><argument name="citation_id">49</argument></grok:render>
### Bottom line — what’s actually moving
- **Cooperation side**: Massive push for US tech companies to build data centres, lay cables, supply GPUs, and do AI work in India. Open internet rhetoric, cybersecurity MoUs, and 5G/6G standards alignment.
- **Friction side**: US wants lighter touch on platform regulation (IT Rules) and freer data flows (DPDP). India is giving some ground on trade barriers but keeping its core digital-sovereignty tools.
- Timeline: BTA negotiations ongoing; first tranche targeted earlier but now rolling into 2026. DPDP compliance deadlines stretch to mid-2027.
In short, the “cooking” is a classic US-India deal: India gets capital and cutting-edge tech for its digital economy; the US gets easier access for its companies and softer regulatory friction on the internet side. Nothing explosive has broken out recently — it’s steady, high-stakes haggling inside the trade and TRUST tracks. Keep watching the next BTA round and the India AI Impact Summit (Feb 2026) for the next updates.
