Zero Duty Game Changer: India-UK Free Trade Agreement Reshapes Electronics Exports

In a significant development for India's electronics industry, the new India-UK Free Trade Agreement (FTA) will allow zero-duty exports of products like smartphones, optical fibre cables, and inverters to the UK. The deal, signed on Thursday, promises to enhance trade prospects for Indian software firms by including IT services.

The FTA aims to strengthen India's position in the UK market, with zero-duty access expected to expedite the growth of Indian electronic products' exports. However, India's commitment under the FTA excludes telecom gears, which include optical fibre equipment and modems.

Industry experts commend the agreement, with Electronics component body ELCINA highlighting reduced import duties on electromechanical components as both a challenge and an opportunity. This agreement, aligning with India's Production Linked Incentive (PLI) scheme, is projected to double bilateral trade by 2030, fostering significant economic growth.

(With inputs from agencies.)