India-UK Trade Pact To Help Boost Chemical Exports, Manufacturing, Says Exporters' Body
Chemicals exporters body CHEMEXCIL said that under the trade agreement, more than 1,000 tariff lines from the chemicals sectors are granted zero-duty access to the UK market.
The free trade agreement between India and the UK will help boost the country's chemical exports and domestic manufacturing as a number of product categories from the segment will enjoy duty-free access in Britain, CHEMEXCIL said on Sunday.
Chemicals exporters body CHEMEXCIL (Basic Chemicals, Cosmetics and Dyes Export Promotion Council) said that under the trade agreement, more than 1,000 tariff lines (or product categories) from the chemicals sectors are granted zero-duty access to the UK market.
This includes key product categories such as organic chemicals, agrochemicals, cosmetics toiletries, essential oil, speciality chemicals, and petrochemicals, CHEMEXCIL Chairman Satish Wagh said.
With a 12.4 per cent contribution to the total trade agreement tariff lines, the chemical sector is among the largest beneficiaries of this agreement, strengthening its position in trade policy and classification, he said.
India's current chemical exports to the UK stand at USD 570.32 million, accounting for 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 close to USD 30 billion worth of chemicals globally, and the UK imports chemicals worth USD 35.11 billion, India's current share in the UK's import basket is only USD 570 million.
This highlights a significant untapped potential. The FTA will enable Indian exporters to penetrate deeper into the UK market, with reduced cost barriers and enhanced visibility,' he said, adding it will promotes supply chain collaboration, enable technology transfer and joint ventures and enhance regulatory cooperation for smoother trade flows.
The pact will offer new opportunities to expand market reach, boost exports, and deepen bilateral trade relations with a high-potential market like the United Kingdom, Wagh said.
