India's Stance on the WTO’s E-commerce Moratorium

The Indian Council for Research on International Economic Relations (ICRIER) suggests India should reassess its position on the WTO's moratorium on e-commerce. The report emphasizes that the benefits from digital exports now surpass concerns over potential tariff revenue losses.

Background

• The 27-year-old moratorium lapsed after members failed to renew it at the 14th Ministerial Conference (MC14) in Yaoundé, Cameroon.
• India initially did not oppose extending the moratorium and later supported its extension until 2030, contingent on discussions related to TRIPS.

Current Challenges and Considerations

• Negotiations collapsed due to unresolved issues, particularly around agriculture and the duration of the extension.
• India's evolving trade profile and increased digital trade provisions in FTAs limit its tariff policy flexibility.

Strategic Recommendations

• India should consider joining the E-commerce Agreement (ECA) to shape digital trade rules.
• It should engage in more industry interactions and consultations to solidify its stance.
• The report supports Brazil's proposal for a permanent Committee on Digital Trade within the WTO.

Economic Context

• India was the fourth-largest exporter of digitally-delivered services in 2025, with exports estimated at $328 billion.
• Maintaining consistent trade surplus in this segment since 2005.

Taxation and Policy Recommendations

• Customs duties are considered ineffective for taxing digital trade.
• Domestic mechanisms like GST and OECD's digital taxation discussions are favored over border tariffs.

Opportunities and Future Directions

The report highlights the opportunity for India to contribute to a rules-based, development-oriented digital trade framework, with a focus on the interests of developing economies in future WTO negotiations.