Industry executives believe that Indian electronics manufacturers will receive advantageous treatment in accessing the nearly $750 billion electronics market in the European Union. This could result in trading up to $50 billion worth of electronics by the year 2031.

Additionally, Indian manufacturers are anticipated to benefit from more affordable access to crucial high-end European machinery and technology needed for the production of intricate products such as semiconductors and electronics components.

The trade agreement facilitates a robust platform for expansion in accordance with India's initiative to enhance exports of electronics.

In addition, the historic agreement encompasses the mutual acknowledgment of certifications, resulting in reduced qualification timelines and guaranteeing that Indian-manufactured goods adhere to European standards.

According to Sunil Vachani, chairman and managing director of Dixon Technologies, the agreement will bring the greatest advantages to industries like LED televisions, LED lighting, and home appliances.

Also Read: Lookback 2025: 7 of the Year's Biggest Tech Acquisitions

Vachani says that certain product categories, such as TVs and lighting, experienced higher tariffs compared to the low duties imposed on IT hardware. The agreement is anticipated to eliminate these tariffs and reduce them to zero duty, allowing contract manufacturer improved market access.

Vachani stated that the contract manufacturer, which had not previously exported to the EU, is now aiming to establish marketing channels and enhance capabilities in order to penetrate this new market in the near to medium future.

According to experts, the recent agreement will enhance the ease of entry into European markets for local companies, allowing them to diversify their market presence. The existing low duties on products like smartphones, tablets, and IT hardware are expected to continue.

At present, the electronics trading relationship between India and the European Union is valued at around $18 billion, as reported by the India Cellular and Electronics Association, a prominent industry group representing leading handset brands and manufacturers such as Apple, Xiaomi, and Dixon. Therefore, the agreement is anticipated to incentivize European corporations to establish manufacturing and sourcing facilities in India.

Also Read: Lookback 2025: 7 Indian Companies That Drove Major Expansions

The Indian Cellular and Electronics Association (ICEA) stated that the reduction of trade barriers and enhanced regulatory coherence could facilitate more extensive partnerships in industries such as electronics, semiconductors, semiconductor manufacturing equipment, capital goods, and other advanced manufacturing sectors. The India Electronics and Semiconductor Association, a representative body for the country's expanding semiconductor industry, anticipates that importing capital goods such as high-tech machinery at lower costs will lead to cost savings for projects.

Also Read: Republic Day 2026: India's Tech Triumphs & Global Leadership

Chandak further emphasized the significant potential for integration into the European supply chain for automotive and industrial electronics. Major industry players such as Bosch, Continental, and Schneider maintain manufacturing operations in the EU, resulting in a growing need for Indian-produced components like PCBs and connectors.