ITA Full Form| ITA Full Form in English

ITA Full Form


Full Form Of ITA (Information Technology Agreement)
Introduction- The information Technology Agreement is a plurilateral agreement
in which many countries of the world (including India) are signatories. The ITA’s
main objective is to reduce trade barriers and accelerate trade gains for the
purpose of mass production and upheaval of communication and Information
Technology (hereinafter referred to as “IT”)
IT Agreement – The ITA came into effect in India in 1997 with 29 countries of the
world trade organization but later on more members became signatories and now
this agreement includes 74 countries. There are countries like China, Taiwan and
the United States (U.S.), who are already leading in the technological world but
there are upstarts countries as well like Thailand and the Philippines who have the
potential to become technological players in the near future.
The USA was the proposer of this agreement wherein only the developed
countries were the initial participants of this agreement. The ITA was
incorporated to lower the custom duties associated with the export and import of
IT based technology as such a move would help in the growth of innovation from
the prospective of the U.S. developing countries have made the most benefit out
of the agreement but it failed to account that developing countries have
structural defects in their manufacturing capacities and therefore they cannot
reap the benefits of the liberalisation measures undertaken in this agreement. As
of now i.e. year 2022 new members have been added to this agreement but no
promises of liberal trade and reduction of tax barriers have been implemented by
some of the new and previous participating members.
Overall Experience of India Regarding The Information Technology Agreement-
When India entered the ITA, it was not in a dominating position because of lack of
domestic manufacturing capabilities but this was a blessing in disguise because
even though India could not gain significant amounts of inward FDI, excessive IT
import acted as a stimulant for the domestic electronic manufacturing of India.
Being a signatory of ITA the import tax of IT goods was reduced to nearly zero,

hence the trade deficit, in this case, did not lead to negative growth of the Indian
sector.