Archive · 15 Sep 2025
India Urged to Renegotiate or Exit IT Agreement
A parliamentary committee wants India to rethink its agreement on IT products with other countries.
They're suggesting India might want to change the deal or even leave it, because the US has taken similar actions.
This agreement, made in 1997, removed tariffs on many IT and electronic items.
The committee believes that this agreement has hurt the Indian IT/Electronics industry.
The committee wants India to push for better terms or leave the deal entirely.
They're also proposing the creation of a special group to study the agreement's effects and recommend improvements.
A parliamentary committee recommended India renegotiate or exit the Information Technology Agreement (ITA).
The committee cited the US's use of tariffs and potential WTO exit as a precedent.
The 1997 ITA is blamed for trade deficits and making Indian manufacturers less competitive.
The committee suggests a high-level group study the impact of the ITA.
The Ministry of Electronics and Information Technology decided not to participate in the ITA expansion.
- Who
- Parliamentary committee and India's Ministry of Electronics and Information Technology.
- What
- Urged India to renegotiate or exit the Information Technology Agreement (ITA) under WTO.
- When
- The report was adopted last week.
- Where
- India
- Why
- To address concerns about trade deficits, lack of competitiveness in the IT/electronics sector, and limitations on regulatory autonomy.
- Agreement
- Information Technology Agreement (ITA)
- Year Signed
- 1997
- Committee
- Standing Committee on Communications and Information Technology
- Recommendation
- Renegotiate or exit ITA
- US Action Cited
- Unilateral exit from WTO obligations and tariffs
- ITA 2.0
- Talks for broadening the original agreement.
