HT Bureau
GUWAHATI, Jan 28: The proposed India–European Union Free Trade Agreement (FTA) is set to emerge as a major structural enabler for India’s electronics and semiconductor ecosystem, positioning the country as a trusted, scalable and geopolitically neutral global partner, according to Ashok Chandak, President of the India Electronics and Semiconductor Association (IESA).
Chandak said the agreement has the potential to fundamentally enhance India’s competitiveness in semiconductor manufacturing and electronics by eliminating or substantially reducing duties on high-end European machinery and critical upstream components.
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“These inputs typically account for more than 70 per cent of semiconductor fabrication capital expenditure. Lowering these costs can significantly improve the viability and global competitiveness of India’s fabs and OSAT units,” he said in an official statement.
Highlighting the export opportunity, Chandak noted that India’s electronics exports to the EU already stand at around USD 12 billion.
Preferential access to the EU’s electronics market, valued at nearly USD 750 billion, would provide a strong growth runway aligned with India’s broader strategy to scale up electronics exports.
He added that as Electronics Component Manufacturing Scheme (ECMS) and OSAT projects gain scale, they will create a more conducive environment for high-value electronics and semiconductor exports from India.
Beyond tariff benefits, Chandak said the harmonisation of quality standards and mutual recognition of certifications under the FTA would play a critical role in accelerating market access.
“Shorter qualification cycles and alignment with European benchmarks from day one will help bridge the gap between policy intent and sustained global leadership in the electronics value chain,” he said.
He also pointed out that the FTA is expected to facilitate deeper cooperation between India and the EU in strategic and future-facing domains such as semiconductors, artificial intelligence and clean technologies, further supporting India’s technological advancement and industrial resilience.
Describing the agreement as more than a trade facilitation measure, Chandak said the India–EU FTA positions India not merely as an alternative manufacturing destination, but as a long-term anchor in global electronics and semiconductor supply chains.
He added that the agreement could be a transformative milestone in India’s journey towards achieving over USD 400 billion in electronics manufacturing by 2030.
