Opening doors for Indian electronics, the UK slashes import duties on smartphones, inverters, and fibre cables under a landmark trade deal poised to reshape exports.
The United Kingdom (UK) will now import smartphones, optical fibre cables, inverters, and several consumer electronics from India at zero customs duty. This comes as part of the newly signed comprehensive economic and trade agreement (CETA) between the two nations, hailed as a landmark free trade deal.
Signed in the presence of Prime Ministers Narendra Modi and Rishi Sunak, the agreement was formalised by India’s Commerce Minister Piyush Goyal and UK Trade Secretary Jonathan Reynolds. It offers 99 per cent duty-free access for Indian exports to the UK, with electronics emerging as one of the biggest gainers.
Industry leaders have welcomed the deal as a timely opportunity to expand India’s presence in the global electronics market. In a report by the Deccan Herald, experts noted that this agreement talks about real free trade. Smartphones, inverters, coaxial cables, and conductors being brought to zero duty opens a huge market for Indian manufacturers.
India’s domestic electronics manufacturing, already targeting US$500 billion by 2030, is expected to benefit from increased access to the UK’s high-value consumer market.
At the same time, duties on several electromechanical components imported from the UK, such as relays, switches, and connectors, have also been removed. While this could challenge local component manufacturers, experts see it as a mixed but ultimately positive outcome, increasing competitiveness and lowering production costs.
The India-UK CETA is set to double bilateral trade to US$112 billion by 2030.
Meanwhile, India has also clinched a deal under the Double Contribution Convention, which will allow Indian professionals and their employers to avoid paying UK social security contributions for up to three years; enhancing the cost efficiency and global competitiveness of Indian talent.
“This FTA will serve as a catalyst for inclusive growth, benefiting farmers, artisans, workers, MSMEs, startups, and innovators while safeguarding India’s core interests and accelerating our journey towards becoming a global economic powerhouse,” remarked Prime Minister Modi at the signing event.
