India and US agree not to demand source code or proprietary tech access in trade deal

India and the United States have agreed on a significant provision in ongoing trade negotiations: neither country will demand source code or other proprietary production processes as a precondition for companies to sell products or services in the other country.

This agreement is part of broader talks aimed at facilitating digital trade and easing regulatory barriers between the two nations.

Officials say the provision covers proprietary information such as source code, technology access, or production process disclosures that had been points of concern for US companies exporting to India.

An official cited by ET observed, under condition of anonymity, that both governments will “refrain from adopting or maintaining measures that discriminate against digital services or products of the other party.”

The deal is expected to particularly influence sectors like telecom, electronics, medical devices and software, where compliance with Indian safety, certification or security mandates had required sharing of internal test reports or vulnerabilities, or other sensitive proprietary data.

For example, companies supplying hardware and software components routers, servers, equipment from providers like Cisco, Dell, HP, etc. had complained that prior regulations required disclosure of proprietary or security-related information as part of certification or regulatory approval.

India has put in place a “security mandate” that requires only those WiFi customer premises equipment (CPE) and IP routers that have obtained government security certification to be used in Indian networks.

As part of this, labs that conduct testing often require companies to share internal reports, vulnerability data, and other production details. US companies had cited intellectual property and security concerns around these obligations.

Officials said that although the government has reduced some certification fees, labs remain expensive and there are concerns about capacity and availability of well-equipped labs.

The new understanding between India and the US is part of a push to ensure the trade deal supports “open, interoperable, resilient and secure digital connectivity and ICT infrastructure,” including undersea cables, satellite communications, wireless networks, and open radio access networks (RAN).

Both governments plan to involve multiple departments to share inputs and views on the trade provisions. India’s ministries and regulatory bodies will consult to ensure that the agreements do not compromise national security while addressing industry concerns