Tech firms face tougher operating climate in India

Significance

Under the new rules, certain online platforms face criminal liability if they do not comply with official requests to remove unlawful content or trace its original source.

Impacts

• Washington is unlikely to intervene, given its own ‘big tech’ concerns and the trajectory of Indian-US relations.
• Tax disputes between Western tech firms and the Indian government will rise.
• India’s ban on TikTok is likely to stay even though the app will comply with the new IT rules.