India needs to leverage FTAs to boost electronic goods exports: NITI Report

India must utilise FTAs to enhance electronics exports, improve market access, and transition to a competitive manufacturing ecosystem.

India needs to address its structural cost disadvantages, leverage free trade agreements (FTAs) and promote the manufacturing of strategic components to boost its electronics goods exports, according to NITI Aayog’s Trade Watch Quarterly report released on Friday (February 13, 2026).

The electronics segment represents a $4.6 trillion global market. However, India’s share in this market stands at only around 1% for 2024. Key markets for high-tech components like integrated circuits and semiconductors remain dominated by China, Hong Kong, and Taiwan.

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While recent FTAs improve external market access, the government think tank in its report called for greater emphasis on predictable domestic procurement, export finance, and regulatory simplification to attract investments, “especially in a turbulent geopolitical environment”.

These measures can anchor India’s transition from a manufacturing base to a globally competitive electronics ecosystem and support the $500 billion manufacturing ambition by FY2030.

According to the report, which tracked the export trends for the July-September quarter, India should enhance market access and integration into global value chains through proactive trade facilitation, government procurement support, anchor investments, MSME participation, and higher domestic value addition.