Think Piece

The Information Technology Agreement, Industrial Development and Innovation- India’s and China’s Diverse Experiences

March 2014
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In the critically important information and communications technology (ICT) industry, trade expansion through ITA could play an important role in facilitating the diffusion of innovation. This think piece compares the diverse experiences of India and China with the Information Technology Agreement (ITA). It seeks to better understand why China’s electronics industry has benefited substantially from the ITA, while with respect to India the gains from trade liberalisation were overshadowed by major costs that are eroding its domestic electronic manufacturing and innovation. In doing so, it examines closely the role played by domestic economic structures in both countries and global network integration in shaping the benefits and costs of ITA participation and the very different approaches of India and China to the current ITA-2 negotiations.

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