India violated global trading rules in IT tariff dispute, says WTO

India violated trade rules by imposing huge import duties on certain informationand communicationtechnology products, the World Trade Organisation (WTO) ruledon Monday. Reuters has reported that India will challenge the ruling of the Geneva-based multilateral organisation.

"We recommend that India bring such measures into conformity with its obligations," a WTO panel report said.

The WTO was hearing a dispute on India imposing a 10 percent custom duty on mobile phones and some other tech products in 2017.

India later raised the custom duty from 10 to 20 percent which upset countries like the US, China, Taiwan, Singapore, and Japan -- all of whom are major tech hubs.

These countries argued that such a levy badly affected their trade with India and violated certain provisions of the WTO.

They added that the import dutiesinfringeWTO norms as India has committed to zero percent bound tariffs on these products. Bound tariffs or duties refer to the ceiling over which a WTO member country cannot impose import duty.

But India has been arguingthat the 2017 decision was taken in order to curb imports and encourage domestic production of tech products.

New Delhi added that these tech products were not part of the 1996 agreement on Information Technology.

The Geneva-based 164 member multi-lateral body deals with global exports and import-related norms. Besides, it adjudicates trade disputes between the member countries.