Indian electronics manufacturers are set to gain preferential access to the European Union’s nearly $750 billion electronics market, potentially reaching $50 billion in trade by 2031. This access also includes reduced costs for high-end European machinery and technology needed to produce advanced products like semiconductors and electronic components, according to industry leaders.
The trade agreement aligns with India’s push to increase electronics exports. It also includes mutual recognition of certifications, which will speed up qualification processes and ensure Indian products meet European standards.
Sectors expected to benefit the most include LED TVs, LED lighting, and home appliances, said Sunil Vachani, chairman and managing director of Dixon Technologies. Previously, these products faced higher tariffs—14% on TVs and 3% on lighting—but under the new deal, duties are expected to drop to zero, opening up EU market access. Contract manufacturers not previously exporting to the EU are now preparing to build networks and capabilities to capitalize on this opportunity.
For products like smartphones, tablets, and IT hardware, which already faced low duties, the deal will make market access easier and help Indian companies diversify globally. Currently, India’s electronics trade with the EU is around $18 billion, according to the India Cellular and Electronics Association (ICEA), which represents brands like Apple, Xiaomi, and Dixon.
ICEA estimates that with proper implementation of the free trade agreement and deeper integration into EU-led global value chains, trade could rise to $50 billion by 2031 and exceed $100 billion by 2035. Over 99% of Indian exports by value are expected to gain preferential access under the deal.
The agreement is also likely to encourage European companies to base manufacturing and sourcing operations in India. Reduced trade barriers and regulatory alignment could strengthen industrial collaboration in electronics, semiconductors, capital goods, and other advanced manufacturing areas.
The India Electronics and Semiconductor Association (IESA) said cheaper imports of high-end machinery, like lithography equipment, wafer cutting tools, and automatic test machines, will reduce project costs. Duties on these machines, previously 40–44%, are expected to drop to zero, boosting India’s semiconductor fab and OSAT sectors.
There is also a strong opportunity for Indian companies to supply components like PCBs and connectors to European automotive and industrial electronics firms such as Bosch, Continental, and Schneider. With India’s electronics exports to the EU already around $12 billion, preferential access to Europe’s $750 billion market offers significant growth potential. As ECMS and OSAT projects expand, the environment will become more favorable for high-value electronics and semiconductor exports, said Chandak of IESA.
