Q4.The aim of Information Technology Agreements (ITAs) is to lower all taxes and tariffs on Information technology products by signatories to zero. What impact would such agreements have on India’s interests?

Information Technology Agreements (ITAs) aim to eliminate tariffs on a wide range of IT products among signatory countries, promoting global trade in these goods.

ITAs offer cheaper access to IT hardware and components, boosting India's IT-enabled services (ITES) and software export sectors. They also facilitate integration into global supply chains, encouraging technology adoption and fostering innovation.

Conversely, ITAs lead to significant revenue loss from customs duties on IT imports. They also pose an adverse effect on India's nascent domestic hardware manufacturing industry and could hinder indigenous R&D efforts.

While India benefited from ITA-1, it has raised concerns about ITA-2's impact on 'Make in India' and electronics manufacturing, necessitating a balanced strategy to protect domestic interests.