Electronics products like LED televisions, small appliances, and telecom equipment are set to gain from the India–UK Comprehensive Economic Trade Partnership signed on July 24, industry executives told Moneycontrol.
While smartphones already enjoy zero duty access under the existing ITA-1 framework, the new agreement could benefit several other electronics and component categories.
“Most electronic products already faced zero import duties under ITA-1, but some components not covered under it will now benefit from the FTA. While the direct impact on the electronics sector may be limited, the overall agreement is positive for the economy,” said Pankaj Mohindroo, Chairman, India Cellular and Electronics Association (ICEA), which represents companies like Apple, Foxconn, Flex, Dixon, Oppo, Vivo, and Xiaomi.
“Partnering with complementary and substantive economies through FTAs adds strategic value, and this deal is still expected to support the electronics sector in the long run,” he added.
Dixon Technologies, a leading domestic contract manufacturer, sees the UK as a serious export destination post the trade deal. “Smartphones are already under zero duty. We at Dixon will be looking at exports to UK very seriously now that the market has opened up,” said Sunil Vachhani, Executive Chairman of Dixon. He noted that products like LED TVs, small appliances and telecom equipment are likely to see export traction.
Dixon Technologies produces a wide range of products across consumer electronics, mobile phones, home appliances, telecom equipment and lighting.
The UK currently imports around $76 billion worth of electronics from across the world, but only about $2 billion comes from India. ICEA believes the new trade agreement could significantly increase India’s share.
“The India–UK FTA is a strategic leap to a new era of economic ties and opportunities for Indian companies to better access international markets and work with UK-based GVCs,” Mohindroo said. ICEA has previously said that the FTA will facilitate India’s goal of reaching $180–200 billion in electronics exports by 2031.
Home-bred telecom equipment and fiber optics maker HFCL said that the trade agreement will allow the company to accelerate international growth.
“As both economies accelerate their AI transformation, robust digital infrastructure becomes critical for supporting artificial intelligence applications and data-driven innovation. This agreement enables us to accelerate international growth, provide competitive technology solutions, and contribute to building next-generation digital infrastructure that will power the AI-driven economies of both nations,” Mahendra Nahata, Managing Director, HFCL, said in a statement.
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