How does the FTA benefit Indian electronics exports to the EU?

The FTA eliminates tariffs of up to 6.7% on 99.1% of electronics tariff lines. Combined with India's PLI (Production Linked Incentive) scheme, this makes Indian-manufactured electronics increasingly competitive in the EU market.

What is India's semiconductor manufacturing strategy?

India is investing $10 billion+ in semiconductor fab infrastructure through the PLI scheme. New fabs are planned in Gujarat and Karnataka, with packaging and testing facilities in multiple states, positioning India as an alternative supply chain node.

Which Indian cities lead in electronics manufacturing?

Bengaluru is the design hub, Noida leads in mobile phone and electronics manufacturing, Chennai houses major EMS (Electronics Manufacturing Services) operations, and Hyderabad is emerging as a semiconductor fab location.

Electronics & Semiconductors

6.7% tariff elimination on 99.1% of electronics lines — India's PLI scheme boosting capacity

India-EU electronics and semiconductor trade has entered a decisive growth phase, driven by converging policy tailwinds on both sides. India's Production Linked Incentive (PLI) scheme has attracted over $20 billion in committed investment across semiconductor fabs, display manufacturing, and electronic component production. Meanwhile, the EU Chips Act is channeling €43 billion toward reshoring semiconductor capacity — creating natural partnership opportunities between Indian design houses and European fabrication and packaging specialists.

Bilateral trade in electronics and semiconductors reached approximately €3.9 billion in 2025, growing at a 14.6% compound annual rate. The India-EU FTA is set to eliminate tariffs of up to 6.7% on 99.1% of electronics tariff lines, covering everything from integrated circuits and printed circuit boards to consumer electronics and passive components. For Indian exporters, this means price-competitive access to the world's second-largest electronics market. For European buyers, it opens a diversified sourcing corridor outside of East Asia.

The corridor is particularly strong in semiconductor design services (India accounts for 20% of the world's chip design workforce), electronic manufacturing services (EMS), LED and display components, and telecom equipment. With India targeting $300 billion in electronics manufacturing by 2026 and Europe seeking supply chain resilience under the EU Chips Act, this sector represents one of the highest-growth bilateral opportunities on the platform.