India and the European Union (EU) are engaging in negotiations to resolve a World Trade Organisation (WTO) import duty dispute over information and technology (ICT) products. The dispute arose after a WTO panel declared on April 17 that India's import duties on various ICT products violated global trading norms. The EU is seeking duty concessions from India, arguing that the current levies breach international trade rules.

However, India contends that any concessions must be discussed within the context of the ongoing free trade agreement (FTA) negotiations, not on a Most Favored Nation (MFN) basis. Under the MFN basis, WTO member countries must provide equal treatment to all nations, and granting concessions to one specific region would violate these rules. India emphasized its willingness to consider concessions under the FTA but ruled out a unilateral approach.

This development adds complexity to the negotiation process, as reducing import duties on ICT products contradicts India's push for self-reliance in electronic goods manufacturing. The Indian government has introduced a production-linked incentive scheme to boost domestic manufacturing, and any concessions granted to the EU may conflict with this strategy. 

Despite the challenges, both parties are working towards an amicable resolution outside the formal WTO framework. India's emphasis on promoting domestic manufacturing adds a layer of nuance to the negotiations, as the country seeks to balance international trade norms with its strategic economic goals.