What Happened: A U.S. trade delegation will arrive in India on July 12 for talks covering a variety of issues, including data localization, e-commerce regulations and tariffs, Reuters reported July 11.
Why It Matters: Although the United States and India are cooperating on defense issues, trade relations between both countries remain contentious. Washington and New Delhi could each offer concessions to avoid a broader confrontation, including a U.S. trade investigation, but it remains unclear if the talks will lead to an understanding between both sides.
Background: The rapid growth of India's $200 billion digital economy has created the need for a comprehensive data protection bill, which has raised concerns about rising data storage costs among U.S. technology firms operating in India.
- To Stake Their Claim in India's Future, Foreign Tech Firms Will Play by New Delhi's Data Rules (July 10, 2019)
- India: As India's Air Defense System Purchase From Russia Proceeds, U.S. Ire Grows (July 9, 2019)
- U.S., India: After Almost 50 Years, Washington Nixes New Delhi's Trade Benefits (June 3, 2019)