India’s decision to withdraw the 6 per cent equalization levy, also known as the “Google Tax” marks a paradigm shift in the nation’s approach to digital taxation. Initially implemented in 2016, the tax sought to level the playing field between domestic and foreign digital service providers. However, it instead became an issue of contention and further strained the trade relationship with the United States, further impacting consumer choice and innovation adversely in the digital sphere.

India reported a trade surplus of $ 45.7 billion, prompting concerns from US officials. India seeks to mitigate that tension, especially after the US announcement of extensive tariffs on foreign made automobiles and other products. India seeks to foster a favourable business environment for American tech giants such as Amazon, Meta and Google which were severely impacted by the levy. While policymakers introduced the Google Tax to........

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