ICT import duty: India challenges WTO panel ruling in favour of EU

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Last Updated17/12/2023

Settlement talks between India and the EU on the ICT (Information and Communication Technology) import duty case have broken down
New Delhi took the matter to the appellate body, the World Trade Organisation’s highest court for dispute resolution.

Brussels had dragged New Delhi into WTO’s dispute settlement mechanism in 2019
- Challenging its levy of import duty on a wide range of ICT products
- On the grounds that the duty was inconsistent with global trade norms and was hurting €600 million of its tech exports to India.
During the negotiations, the EU was seeking customs duty concessions on certain goods, which was not acceptable to India as it violates WTO rules.
These concessions can only be given in a free trade agreement
India has imposed higher duties on ICT products as it looks to boost the manufacturing of electronic products with the help of the production-linked incentive scheme.
The current strategy has also paid off as India’s electronic products have been on the rise even as broader goods exports have declined during the current fiscal.
However, amid the current deadlock over the appointment of judges at WTO’s appellate body, a decision on the ongoing India-EU dispute could take years.
Several disputes are already pending with this body and reforms to address the issue are expected to be taken up during the WTO’s 13th Ministerial Conference in February next year.