India–UK FTA To Boost Chemical Exports & Domestic Manufacturing: CHEMEXCIL

New Delhi, July 28 (KNN) The recently concluded Free Trade Agreement (FTA) between India and the United Kingdom is expected to significantly boost India’s chemical exports and domestic manufacturing, the Chemicals Export Promotion Council (CHEMEXCIL) said on Sunday.

According to CHEMEXCIL Chairman Satish Wagh, the agreement provides zero-duty access to over 1,000 tariff lines from India’s chemical sector in the UK market. 

These include high-value categories such as organic and specialty chemicals, agrochemicals, cosmetics and toiletries, essential oils, and petrochemicals.

With chemicals accounting for 12.4 percent of the total tariff lines under the trade agreement, the sector is among its largest beneficiaries. 

Wagh noted that this preferential access will not only enhance India’s trade competitiveness but also bolster the sector’s prominence in global trade policy frameworks.

India’s current chemical exports to the UK stand at USD 570.32 million, representing around 2 percent of India’s global chemical exports. 

However, CHEMEXCIL estimates that exports could rise by 30–40 percent in the next financial year, potentially reaching USD 650–750 million in 2025–26. 

This projected growth is attributed to tariff elimination, lower market entry barriers, and enhanced visibility for Indian products.

While India exports nearly USD 30 billion worth of chemicals globally, the UK’s annual chemical imports stand at USD 35.11 billion, of which India currently supplies only a small fraction. 

“This reflects a substantial untapped potential,” Wagh said, adding that the FTA could help Indian exporters expand their footprint in the UK’s high-value market.

Beyond export growth, the agreement is also expected to promote supply chain collaboration, encourage joint ventures, facilitate technology transfer, and strengthen regulatory cooperation between the two countries. 

These developments are likely to contribute to long-term industrial growth and reinforce bilateral trade relations with the UK, CHEMEXCIL said.

(KNN Bureau)

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