The recently agreed Free Trade Agreement (FTA) between India and the European Union is expected to significantly boost Indian chemical exports to Europe, potentially doubling shipments over the next four to five years, industry leaders say.
According to Satish Wagh, Chairman of the Chemical Export Promotion Council of India (Chemexcil), tariff reductions, streamlined rules of origin and eased non-tariff barriers under the deal will make Indian chemical products more competitive in the European market — one of the largest and most regulation-intensive globally.
Tariff Cuts to Spur Growth
Under the FTA framework, most tariffs that previously applied to Indian chemical exports entering the EU will be eliminated or reduced, removing a major cost disadvantage and opening new opportunities especially in segments such as specialty chemicals, agrochemicals and intermediates.
Wagh noted that the deal dovetails with a broader shift among European buyers seeking to diversify procurement away from traditional suppliers — particularly China — and toward reliable partners like India. With tariff barriers reduced, exports could grow sharply as Indian firms leverage improved market access and compliance with European standards.
Timing and Implementation
The FTA — hailed as a landmark pact by policymakers on both sides — still requires formal ratification by EU member states and India before coming into force, a process expected to take up to a year. Once implemented, the agreement is expected to serve as a catalyst for export growth in chemicals and other key sectors like textiles, engineering goods and gems and jewellery.
Broader Benefits for Indian Exporters
Industry analysts say the FTA will benefit multiple export-oriented sectors beyond chemicals by granting preferential access to one of the world’s richest markets. This follows the conclusion of nearly two decades of negotiation, making the deal a strategic milestone in India’s global trade agenda.
For the gems and jewellery sector, for example, exporters expect bilateral trade to nearly double in coming years as competitive tariffs remove longstanding barriers to EU market entry.
