The European Union has filed a complaint at the World Trade Organisation against India over import duties imposed on ICT products. The EU said India had pledged as a member of the WTO to not impose duties on these products, but it has been charging rates of 7.5-20 percent on such products imported into the country. This is a "clear breach by India of WTO rules", according to the EU.
The European Commission said the duties affect products such as mobile phones and components, base stations, integrated circuits and optical instruments. Around EUR 600 million of EU exports are affected each year.
The WTO will start a 60-day consultation with the countries in an attempt to resolve the matter. If no settlement is reached, the EU can ask the WTO to set up a panel to rule on the case.
The EU's case comes as the Indian government has been working in recent years to increase local manufacturing, either by domestic or foreign firms. The 'Make in India' programme started in 2014 has led to a significant increase in foreign direct investment in the country, with notably several mobile phone and telecom equipment manufacturers setting up new production and development sites there.
