The FTA positions India as a trusted, scalable, and geopolitically neutral Semiconductor and Electronics partner—not just an alternative, but a long-term anchor

By Ashok Chandak, President : IESA.

The India–EU FTA is a transformative structural enabler for India’s electronics and semiconductor ecosystem. By eliminating or significantly reducing duties on high-end European machinery and upstream components—which typically account for nearly 70+% of semiconductor fab capex—the agreement potentially could lower project costs and improves the global competitiveness of India’s fabs and OSAT units. With India’s electronics exports to the EU already at around USD 12 billion, preferential access to the EU’s nearly USD 750-billion electronics market creates a powerful runway for growth in line with India’s strategy to boost electronics exports. As ECMS and OSAT projects scale up, they will create a far more conducive environment for high-value electronics and semiconductor exports. Beyond tariffs, harmonisation of quality standards and mutual recognition of certifications shortens qualification cycles and ensures India-made products meet European benchmarks from day one—bridging the gap from policy intent to sustained global leadership in the electronics value chain.” The FTA is also expected to facilitate cooperation in critical areas like Artificial Intelligence, clean technologies, and semiconductors, supporting India’s technological advancement. Overall , The India-EU FTA is a transformative milestone that will fundamentally recalibrate India’s electronics and semiconductor trajectory to cross 400 Bn$ Electronics manufacturing in India by 2030.