In a major step towards redefining global trade dynamics and boosting India's high-tech ambitions, the India–UK Free Trade Agreement (FTA) is poised to unlock transformative opportunities across the electronics sector. With the potential to reshape export competitiveness, drive foreign collaborations, and accelerate industrial growth, the FTA is being hailed as a landmark moment by industry leaders.
Ashok Chandak, President of SEMI India and IESA (India Electronics and Semiconductor Association), underscored the strategic significance of the FTA, particularly for India's rapidly evolving electronics industry. He says, “The India–UK Free Trade Agreement is a strategic milestone that enhances India’s global image and unlocks significant business opportunities across key sectors. By eliminating tariffs on Electronics products, components, raw materials, and capital equipment, it reduces production costs and boosts the global competitiveness of 'Made in India' products.”
India’s electronics manufacturing ecosystem has already seen a surge in both domestic and export-focused production. The FTA further aligns with the government’s PLI schemes and 'Make in India' mission, creating a conducive environment for global players to invest, innovate, and scale from Indian soil. The removal of tariffs is expected to significantly benefit manufacturers by streamlining the supply chain and making locally made products more cost-efficient in international markets.
"Crucially, this agreement sets a new benchmark for future FTAs, reflecting India’s alignment with like-minded democracies and strengthening its strategic position in high-tech sectors such as electronics. With duty-free access for Indian exports like smartphones, optical fibre cables, and inverters, the FTA positions India to scale its current ~US$2 billion share of UK electronics imports and accelerates progress toward its ambitious US$500 billion electronics Industry target by 2030,” noted Ashok Chandak.
While trade in goods is the most visible benefit, the India–UK FTA is also opening up deep avenues for cross-border technology collaboration. From next-gen chip design to embedded software, the deal promotes a seamless partnership between UK’s strong design ecosystem and India’s rich engineering talent pool. This is especially crucial in the era of semiconductors, where design innovation and testing efficiency are key to staying globally competitive.
"The services sector stands to gain from increased collaboration in design, testing, and embedded software—combining UK’s design leadership with India’s engineering expertise,” emphasized Ashok Chandak.
With the global tech economy shifting toward sustainability and resilience, this agreement also facilitates strategic gains in climate-conscious innovation. Cooperation in green electronics, low-emission manufacturing, and talent exchange will further elevate India’s image as a responsible and forward-looking electronics powerhouse.
“The FTA also promotes skilled talent mobility, strengthens supply chain resilience, and advances cooperation in green and sustainable electronics,” added Ashok Chandak, reinforcing the broader vision behind the policy.
As emphasized by Chandak, the India–UK FTA is not just a trade facilitation mechanism—it is a symbol of India’s evolving stature on the global stage. For the electronics sector, it offers a clear path to innovation, scale, and strategic growth, reaffirming India’s vision of becoming a trusted global manufacturing partner in the decade ahead.
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