With an India–EU free trade deal advancing, Indian electronics firms reportedly gain access to a $750-billion EU market and cheaper high-end machinery for advanced manufacturing.
Indian electronics manufacturers are set to gain preferential access to the European Union’s electronics market, valued at nearly $750 billion, following progress on the India–EU free trade agreement.
According to a report by The Economic Times, the proposed deal is expected to expand export opportunities for Indian companies, while also lowering the cost of importing high-end European machinery and technology needed for electronics and semiconductor production.
The report said the agreement aligns closely with India’s strategy to boost electronics exports and move up the global value chain. A key feature of the pact is the mutual recognition of standards and certifications, which is expected to shorten approval timelines and ensure that products manufactured in India meet European regulatory benchmarks.
Sectors such as LED televisions, LED lighting and home appliances are likely to see the biggest gains. These categories currently face relatively high import duties in the EU, unlike IT hardware, which already enjoys low tariffs. Under the agreement, duties on products such as televisions and lighting equipment are expected to be eliminated, improving market access for Indian manufacturers.
Sunil Vachani, chairman and managing director of Dixon Technologies, told ET that the removal of tariffs could open new export avenues. Dixon, which has so far focused on domestic manufacturing, is now preparing to build marketing networks to enter the European market in the near term.
While smartphones, tablets and IT hardware already face low duties, executives said the deal would still improve access to European buyers and help Indian firms diversify their export destinations.
According to the India Cellular and Electronics Association (ICEA), India’s current electronics trade with the EU stands at around $20 billion. With effective implementation of the FTA and deeper integration into EU-led global value chains, this could rise to $50 billion by 2031 and cross $100 billion by 2035.
The agreement is also expected to encourage European companies to expand manufacturing and sourcing operations in India. Reduced trade barriers and closer regulatory alignment could support collaboration in electronics, semiconductors, manufacturing equipment and other advanced industries.
The India Electronics and Semiconductor Association (IESA) said the deal could sharply reduce costs for semiconductor projects. Import duties on specialised machinery, including lithography tools, wafer-cutting equipment and automated testing systems, are expected to fall from as high as 40–44% to zero, improving project viability.
