ENA Sectors 2025-07-28 16:43:04 <p><span style="font-size:14px"><strong>New Delhi, July 28 (KNN)</strong> The recently concluded Free Trade Agreement (FTA) between India and the United Kingdom is expected to significantly boost Indias chemical exports and domestic manufacturing, the Chemicals Export Promotion Council (CHEMEXCIL) said on Sunday.</span></p> <p><span style="font-size:14px">According to CHEMEXCIL Chairman Satish Wagh, the agreement provides zero-duty access to over 1,000 tariff lines from Indias chemical sector in the UK market. </span></p> <p><span style="font-size:14px">These include high-value categories such as organic and specialty chemicals, agrochemicals, cosmetics and toiletries, essential oils, and petrochemicals.</span></p> <p><span style="font-size:14px">With chemicals accounting for 12.4 percent of the total tariff lines under the trade agreement, the sector is among its largest beneficiaries. </span></p> <p><span style="font-size:14px">Wagh noted that this preferential access will not only enhance Indias trade competitiveness but also bolster the sectors prominence in global trade policy frameworks.</span></p> <p><span style="font-size:14px">Indias current chemical exports to the UK stand at USD 570.32 million, representing around 2 percent of Indias global chemical exports. </span></p> <p><span style="font-size:14px">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. </span></p> <p><span style="font-size:14px">This projected growth is attributed to tariff elimination, lower market entry barriers, and enhanced visibility for Indian products.</span></p> <p><span style="font-size:14px">While India exports nearly USD 30 billion worth of chemicals globally, the UKs annual chemical imports stand at USD 35.11 billion, of which India currently supplies only a small fraction. </span></p> <p><span style="font-size:14px">This reflects a substantial untapped potential, Wagh said, adding that the FTA could help Indian exporters expand their footprint in the UKs high-value market.</span></p> <p><span style="font-size:14px">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. </span></p> <p><span style="font-size:14px">These developments are likely to contribute to long-term industrial growth and reinforce bilateral trade relations with the UK, CHEMEXCIL said.</span></p> <p><em><strong><span style="font-size:14px">(KNN Bureau)</span></strong></em></p> 42976 https://knnindia.co.in/news/newsdetails/sectors/indiauk-fta-to-boost-chemical-exports-domestic-manufacturing-chemexcil 2025-07-28 16:43:04 knnindia.co.in