India has unlocked preferential access to the European Union’s $750 billion electronics market under its new Free Trade Agreement, creating a major growth runway for domestic manufacturers and exporters. The deal is expected to significantly boost India’s electronics exports and accelerate its integration into global value chains.

Currently, India–EU electronics trade stands at around $18 billion annually. According to estimates from the India Cellular and Electronics Association (ICEA), exports could rise to $50 billion by 2031 and scale beyond $100 billion by 2035 as Indian firms move deeper into design, components, and high-value manufacturing.

Several product categories stand to benefit immediately. Duties of up to 14% on LED televisions and around 3% on LED lighting and home appliances have been eliminated, enabling zero-tariff entry into the EU. Smartphones and IT hardware, which already face relatively low duties, are expected to gain momentum through regulatory harmonization and faster approvals.

A key strategic win is that nearly 99.6% of Indian electronics exports will now qualify for preferential access. Mutual recognition of standards and certifications is set to shorten qualification timelines, helping Indian products meet stringent European compliance requirements more efficiently.

The agreement also provides a strong boost to India’s semiconductor ambitions. Import duties on critical manufacturing equipment—such as lithography tools, wafer fabrication machinery, and testing systems—will drop from 40–44% to zero, easing costs for projects led by Tata Electronics, Micron, and upcoming OSAT facilities.

The FTA is already acting as an investment magnet, with European companies expanding manufacturing footprints in Noida, Chennai, and Hyderabad, while Indian players like Dixon Technologies build EU-facing sales networks. Together with PLI incentives, the deal positions India as a trusted electronics supplier in a rapidly realigning global supply chain.