(TI) - India is willing to lower the import duty on European wines, provided it is given greater access in IT, officials said here.

Talks with the European Union for a free trade agreement are set to resume next month after a gap of two years, marked by a quid pro quo approach by the parties.

Besides wines, New Delhi is open to concessions on high-tech auto parts as the Narendra Modi-government looks to leverage a trade agreement to further its Make in India and Digital India initiatives even as exports have contracted for the seventh month in a row in June.

"There is a strong political will to conclude FTA (free trade agreement) with the European Union to get the latest technology and expertise from the EU to ensure that Make in India and Digital India initiatives of the government are successful," a senior commerce ministry official said.

On its part, Brussels must grant "data secure nation" status and facilitate the easier movement of skilled professionals in Europe.

India is willing to charge an average duty of 75 per cent across different varieties of wines and spirits initially, with a clause to lower this to 40 per cent over three years.

The EU, however, is demanding deeper concessions. It wants duties on wines and spirits to be cut over a three-year period to just 20 per cent for high-priced spirits, 30 per cent for middle-level products and 40 per cent for the cheap varieties.

In automobile and auto parts, the Centre is willing to reduce duties on certain high-tech components such as automotive microchips, which are difficult to make in the country, despite opposition from local industry bodies. Officials said the move was aimed at enabling easier transfer of technology. The Europeans want duties on automobiles to be eliminated gradually from the current levels of 80-130 per cent.

India is seeking improved market access in services, which contribute 57 per cent to GDP (gross domestic product). The country has demanded easy entry rules to the European markets for its IT professionals and the data secure status.

The EU follows a high standard of data compliance and has strict protection laws. Hence, a recognition as "data secure nation" will give a boost to the country's IT sector by making it more competitive and facilitating a greater inflow of investments.

A recent survey by the Reserve Bank of India on computer software and ITeS exports shows that Europe's share in software exports declined to 20 per cent in 2012-13 from 27 per cent in 2008-09. The share of skilled professionals such as software engineers in overall software exports fell to 14 per cent from 25 per cent.

According to certain estimates, the outsourcing business can surge to $50 billion annually from around $20 billion if India obtains the coveted status.

Talks on FTA, known as the Comprehensive Economic Co-operation Agreement, got stuck in 2013 as the EU wanted commitments in insurance, legal, retail and government procurement and sought steeper cuts in the import duty of cars.

"An agreement with the EU is very much feasible as long as it is realistic. For instance, we cannot give commitments in sectors such as multi-brand retail or legal, where we do not have domestic legislation," officials said.