India must strategically use free trade agreements (FTAs) to expand the country’s electronic goods exports and enhance global competitiveness, according to the latest Trade Watch Quarterly report by NITI Aayog.
The report highlights that India’s electronics sector — valued at over $4.6 trillion globally — has grown rapidly in output and export performance, particularly in segments like mobile phones and telecom equipment. However, the country’s share in international electronics trade remains modest, at around 1 %, largely due to structural cost disadvantages and limited participation in global value chains.
To boost exports, NITI Aayog calls for leveraging FTAs more effectively to secure preferential market access, reduce trade barriers and integrate Indian manufacturers deeper into global supply networks. While existing trade agreements have improved external market access, the report notes that greater emphasis is needed on predictable domestic procurement, export finance facilities and regulatory simplification to attract investments and support exporters in a volatile geopolitical landscape.
The think tank further recommends advancing beyond assembly-led production toward higher value-added activities such as component manufacturing and sustained research and development, aligning incentives to help Indian firms compete with global peers.
The report also points out the potential of cross-border e-commerce and improved logistics as avenues for expanding export volumes, particularly for micro, small and medium enterprises participating in electronics supply chains.
Experts say that aligning policy support with strategic use of FTAs could help India grasp larger shares in key markets and support its long-term goal of becoming a major global exporter of electronic goods by 2030.