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A Parliamentary Panel urges India to reconsider its WTO ITA commitments, citing US actions and negative impacts on the electronics sector.
Standing Committee on Communications and Information Technology has, in a report, blamed the agreement India signed in 1997 for a host of ills plaguing the IT and electronics sector (File)
The Parliament’s Standing Committee on Communications and Information Technology should look at US’ unilateral exit from WTO obligations and its use of tariffs to protect its domestic industry as an opportunity to negotiate favourable clauses under the plurilateral Information Technology Agreement (ITA) or even explore an exit.
The parliamentary panel, in a report, blamed the 1997 agreement India signed for several issues plaguing the IT and electronics sector, including a wide trade deficit and making Indian manufacturers uncompetitive to the benefit of more advanced economies, news agency PTI reported.
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The Committee has observed that India’s experience with the ITA has been “most discouraging”, which “almost wiped out the IT/Electronics industry” from India, while acknowledging its benefits to consumers in terms of reduced costs and access to technology.
While the Ministry of Electronics and Information Technology told the Committee that India, as a participating member of the ITA under the WTO, cannot unilaterally withdraw, the panel has cited the example of the US to suggest that it seems “quite plausible” in the current scenario.
The Committee, headed by BJP MP Nishikant Dubey, called for free trade agreements at bilateral and multilateral levels between member countries in their mutual national interest.
The Committee noted that the trade scenario created by the unilateral announcement of 50 per cent tariffs on India and different increased tariffs on other countries of the world by the US presents both challenges and opportunities. It urged India to adopt a proactive and well-calibrated approach towards the ITA amid the rapidly changing world trade order
The committee adopted its report last week and submitted it to the Lok Sabha Speaker. Parliament is expected to adopt it in the next session.
Seeking an in-depth examination of the ITA’s impact on the electronics manufacturing ecosystem in India and its ramifications and challenges, the key parliamentary body has recommended forming a high-level empowered inter-ministerial committee including ministries of Electronics & Information Technology, External Affairs, Commerce and Industry, Finance, and other stakeholders to examine ITA 1.0 and ITA 2.0, their implications, and suggest a way forward.
India’s ITA commitments at the WTO for a legally binding zero tariff policy on ICT products has severely imposed restrictions and limitations on the country’s functional autonomy in regulatory and policy matters, the Committee in its draft report said.
The Ministry of Electronics and Information Technology, however, told the Committee that in light of the learnings from India’s experience with the ITA 1.0, it has been decided not to participate in the agreement’s expansion.
The draft report said the Committee strongly feels that if the US can exit WTO obligations unilaterally, India should also see it as an opportunity to negotiate favourable clauses under the ITA or consider exiting.
The ministry told the Committee that at the time of joining the ITA, India’s electronics sector was underdeveloped, and the removal of tariffs prematurely exposed it to global competition, stifling growth.
(With inputs from agencies)
About the Author
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben…Read More
Shobhit Gupta is a sub-editor at News18.com and covers India and International news. He is interested in day to day political affairs in India and geopolitics. He earned his BA Journalism (Hons) degree from Ben… Read More
September 15, 2025, 17:49 IST
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