The Information Technology Agreement (ITA) is essential for India because it promotes international trade in information and communication technology (ICT) products.

The agreement eliminates tariffs on ICT goods among participating countries, thereby lowering the cost of technology imports for Indian companies. This, in turn, enables Indian firms to improve their competitiveness by accessing cutting-edge technology at a lower cost. Moreover, ITA membership helps India integrate into the global value chain by fostering trade liberalization, promoting investment inflows, and facilitating technology transfer.

ITA also encourages research and development activities in the ICT sector, leading to the creation of new products and services that can boost economic growth in India. Overall, ITA is an important tool for India to achieve technology-driven growth and compete effectively in the global market.