New Delhi, Apr 19 (KNN) India is considering to appeal against a recent ruling by World Trade Organization (WTO) panel on imposition of tariffs on mobile phones and electronic components.

The central government is planning to take this step to ensure that the ruling does not impact the country’s domestic manufacturing goals, reported Indian Express.

Coming as a setback for India, on Monday the WTO’s dispute settlement panel ruled against the import duty levied by it on a wide range of information and communications technology (ICT) products, including mobile phones.

Siding with a complaint by the European Union (EU), Japan and Taiwan, the panel ruled that India had violated global trade rules.

In 2019, the EU had challenged the import duty of 7.5 per cent – later increased to 15 per cent – levied by India in 2017 on a wide range of IT products, such as mobile phones and components, as well as integrated circuits, to curb imports and step up domestic production.

Later that year Japan and Taiwan filed similar complaints.

Despite opposition from a number of the trade organisation’s members, India raised the duty to 20 per cent later.

India is a signatory to the Information Technology Agreement (ITA) which came into effect in July 1997 and accounts for more than 95 per cent of the world trade in products such as computers, telecom equipment, semiconductors and scientific instruments.

As part of a signatory to the agreement, India is required to eliminate tariffs on these products.

“A number of products mentioned in this ruling did not exist when the ITA was signed. That is going to be our primary submission in the appeal,” an official said.

Industry experts said that if the appellate body also ruled against India, it would mean that the country would have to make changes to its duty structure.  (KNN Bureau)