On October 19, 2020, India signed a historic agreement with the World Trade Organization (WTO), paving the way for increased trade and investment in the country. The agreement, known as the Information Technology Agreement (ITA) 2, is set to eliminate tariffs on a wide range of technology products, including medical equipment, satellites, and touchscreens.

India`s decision to sign the ITA 2 is seen as a significant step towards boosting its position in the global technology market. The country`s IT sector is one of its fastest-growing industries, accounting for over 7% of its GDP and employing around 4.5 million people. By removing tariffs on technology products, India hopes to increase its competitiveness in the sector and attract more foreign investment.

Under the ITA 2, India has agreed to eliminate tariffs on 50% of the covered products by July 1, 2021, with the remaining tariffs phased out by 2023. The agreement is expected to benefit Indian businesses that rely heavily on technology imports, as well as consumers who will have access to a wider range of technology products at lower prices.

The signing of the ITA 2 is also a significant win for the WTO, which has been struggling to make progress on trade negotiations in recent years. The agreement is the first significant multilateral trade deal since the WTO was established in 1995, and it is expected to boost the organization`s credibility and relevance in the international trade arena.

However, not everyone is happy with India`s decision to sign the ITA 2. Critics argue that the elimination of tariffs on technology products will only benefit large multinational corporations, while small and medium-sized Indian businesses will struggle to compete. There are also concerns about the impact the agreement will have on India`s domestic manufacturing sector, which may be unable to compete with cheaper imports.

Despite these concerns, the signing of the ITA 2 is a significant step forward for India`s trade and investment policies. By opening up its markets to technology imports, India is signaling its commitment to becoming a major player in the global tech sector. As the world becomes increasingly dependent on technology, India`s decision to sign the ITA 2 is likely to have far-reaching implications for the country`s economic growth and competitiveness.

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Last Modified: junho 11, 2023