New Delhi, Jul 27 (PTI) The free trade agreement (FTA) between India and the UK is expected to significantly boost India's chemical exports and domestic manufacturing, as several product categories from the sector will gain duty-free access in the British market, CHEMEXCIL said on Sunday.
The Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL) stated that the FTA grants zero-duty access to over 1,000 tariff lines from the chemicals sector.
Key product categories benefiting from the pact include organic chemicals, agrochemicals, cosmetics and toiletries, essential oils, specialty chemicals, and petrochemicals, CHEMEXCIL Chairman Satish Wagh said.
With the chemical sector accounting for 12.4 per cent of the total tariff lines under the agreement, it is positioned as one of the biggest beneficiaries, Wagh added.
India’s current chemical exports to the UK are valued at USD 570.32 million, representing about 2 per cent of India’s global chemical exports.
“However, the agreement sets the stage for exponential growth. A surge of 30-40 per cent in exports is expected, potentially reaching USD 650-750 million in 2025-26. This growth will be driven by tariff elimination, improved competitiveness, and easier market entry for Indian exporters,” Wagh said.
While India exports around USD 30 billion worth of chemicals globally, the UK imports chemicals worth USD 35.11 billion, with India’s share standing at just USD 570 million.
“The FTA will help Indian exporters penetrate deeper into the UK market, reduce cost barriers, and increase visibility,” Wagh noted, adding that the agreement will promote supply chain collaboration, technology transfer, joint ventures, and improved regulatory cooperation.