UK to import smartphones, optical fibre cables, inverters at zero duty from India under FTA

New Delhi: In a major boost to India's electronics sector, exports of smartphones, optical fibre cables, and inverters to the UK will attract zero duty under the free trade agreement signed between the countries on Thursday.

The India-UK FTA opens up export potential for Indian software firms, with the inclusion of IT and IT-enabled services in the list.

"Zero-duty access is expected to accelerate exports of electronic products, with smartphones, optical fibre cables, and inverters set to strengthen India’s foothold in the UK market," an official source said.

India has excluded commitment on smartphones, telecom gears like optical fibre equipment, base stations, modem etc under the FTA, officially called the Comprehensive Economic and Trade Agreement (CETA).

Electronics component body ELCINA, Secretary General Rajoo Goel said that the India-UK free trade agreement comes as a breath of fresh air because it is an agreement which really talks about free trade and brings more than 90 per cent of the products which are traded between our two countries to zero duty.

He said electronics is a mixed bag because the duty on some of the electromechanical components such as switches, relays and connectors imported from the UK has been brought down to zero from the current 10-20 per cent.

"This could make imports cheaper into India and may make life a little more difficult for the domestic manufacturers. However, there has been a very positive move in the sense that smartphones, inverters and coaxial cables as well as conductors have been brought down to zero duty by the UK government. That opens a very big market for Indian manufacturers and this also includes consumer electronics," Goel said.

He said that the FTA is a good opportunity for the Indian electronics industry, and the UK should soon become a much bigger and more lucrative market for India with a win-win for both countries.

Mobile industry body ICEA Chairman Pankaj Mohindroo said the agreement's provision for zero-duty access to UK markets for Indian electronic products - including smartphones, inverters, and optical fibre cables - will significantly advance "Make in India for the World" initiative.

"With bilateral trade projected to double by 2030 and India's domestic electronics manufacturing ecosystem targeted to reach USD 500 billion, this partnership positions both nations for substantial economic growth," he said.

Mohindroo said the comprehensive agreement, covering nearly 100 per cent of bilateral trade value, represents another significant milestone in India's strategic approach to international commerce, following substantial free trade agreements with the UAE, the European Free Trade Association (EFTA), and Australia.

Domestic telecom gear maker HFCL managing director Mahendra Nahata said that the agreement is a significant milestone for strengthening economic ties between both nations.

"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," he said.

Telecom gear maker GX Group CEO Paritosh Prajapati said that the agreement aligns directly with India’s Production Linked Incentive (PLI) scheme, reinforcing the nation’s role as a high-performance manufacturing and research and development hub.

"Moreover, this agreement sends a strong signal to the European Union, demonstrating India’s credibility as a long-term, strategic trade and technology partner. It adds momentum to the ongoing EU–India FTA discussions and reinforces Europe’s growing alignment with India as a preferred partner for innovation, industrial cooperation, and sustainable growth," Prajapati said.

Semiconductor industry body SEMI India and IESA, President, Ashok Chandak, said that eliminating tariffs on electronics products, components, raw materials, and capital equipment reduces production costs and boosts the global competitiveness of 'Made in India' products.

"With duty-free access for Indian exports like smartphones, optical fibre cables, and inverters, the FTA positions India to scale its current around USD 2 billion share of UK electronics imports and accelerates progress toward its ambitious USD 500 billion electronics export target by 2030. Electronic exports also benefit the made-in-India semiconductor chips," Chandak said.

AIonOS, Co-Founder and Vice Chairman, CP Gurnani, said that the agreement strengthens the bridge between two digital economies and accelerates our collective journey toward smarter enterprises and inclusive transformation.