India’s plan to let 1998 digital trade deal expire may worsen chip shortage
Enlarge (credit: Narumon Bowonkitwanchai | Moment)
India's plan to let a moratorium on imposing customs duties on cross-border digital e-commerce transactions expire may end up hurting India's more ambitious plans to become a global chip leader in the next five years, Reuters reported.
It could also worsen the global chip shortage by spiking semiconductor industry costs at a time when many governments worldwide are investing heavily in expanding domestic chip supplies in efforts to keep up with rapidly advancing technologies.
Early next week, world leaders will convene at a World Trade Organization (WTO) meeting, just before the deadline to extend the moratorium hits in March. In place since 1998, the moratorium has been renewed every two years since-but India has grown concerned that it's losing significant revenues from not imposing taxes as demand rises for its digital goods, like movies, e-books, or games.