India Gains Preferential Access to EU Electronics Market

India has secured preferential entry into the European Union’s $750 billion electronics market through its new Free Trade Agreement, opening a powerful growth avenue for domestic manufacturers and exporters. The pact is expected to sharply accelerate electronics exports while strengthening India’s role in global value chains.

At present, India–EU electronics trade is valued at about $18 billion a year. Industry estimates from the India Cellular and Electronics Association (ICEA) suggest exports could grow to $50 billion by 2031 and exceed $100 billion by 2035, driven by deeper participation in high-value segments such as components, design, and advanced manufacturing.

Several electronics categories will see immediate gains. Import duties of up to 14% on LED televisions and around 3% on LED lighting and home appliances have been eliminated, allowing zero-tariff access to EU markets. Smartphones and IT hardware, which already attract relatively low duties, are likely to benefit further from regulatory alignment and faster market approvals.

One of the most significant outcomes is that nearly 99.6% of Indian electronics exports will now qualify for preferential treatment. Mutual recognition of standards and certifications is expected to reduce compliance costs and shorten qualification timelines, enabling Indian products to meet stringent European norms more efficiently.

The agreement also strengthens India’s semiconductor ambitions. Duties on critical equipment—including lithography tools, wafer fabrication machinery, and testing systems—will fall from 40–44% to zero, providing major cost relief for projects led by Tata Electronics, Micron, and upcoming OSAT facilities.

With European firms expanding manufacturing bases in Noida, Chennai, and Hyderabad, and Indian companies like Dixon Technologies building EU-focused sales networks, the FTA positions India as a reliable electronics manufacturing hub amid global supply chain realignment.