The India-UK Free Trade Agreement (FTA), finalised on May 6, 2025, is set to reshape India’s chemical export landscape by eliminating tariffs on 99 per cent of goods, including organic chemicals. This development is expected to significantly enhance India’s market access in the UK and strengthen its global chemical trade position.
One of the most notable outcomes of the deal is the zero-duty access granted to Indian organic chemicals, which is expected to drive exports from $420 million in 2024 to an estimated $966 million by 2027. This competitiveness boost comes amid a four per cent tariff cut, placing Indian exporters on par with global counterparts.
In addition to cost benefits, the FTA is anticipated to catalyse technological advancements in India’s chemical manufacturing sector. Both labour-intensive and tech-driven industries are expected to benefit from increased investment and innovation, helping Indian manufacturers integrate more deeply into global supply chains.
The broader economic impact is also promising. The bilateral trade volume between India and the UK is projected to double to $120 billion by 2030, reflecting vast growth potential across sectors.
Source: Alchempro
However, to fully leverage the FTA, Indian chemical exporters will need to prioritise regulatory compliance with UK environmental and safety norms, streamline logistics and reduce operational costs to enhance competitiveness, and explore niche markets within the UK’s chemical industry.
The India-UK FTA presents a significant opportunity for Indian chemical exporters to enhance their market presence in the UK. By capitalising on tariff eliminations and focusing on compliance and innovation, Indian chemical manufacturers can position themselves for sustained growth in the UK market.
ALCHEMPro News Desk (HU)
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