India says EU trade deal set to boost rubber, chemicals segments

Brussels, Belgium – India’s rubber, plastics and chemicals sectors are expected to be among the main beneficiaries of the newly concluded EU-India free trade agreement (FTA), according to a factsheet published by India’s ministry of commerce.

The EU and India concluded their ‘mother of all’ free trade deal 27 Jan, providing preferential access to both markets.

On the Indian side, the ministry of commerce said the deal unlocks “unprecedented market access” for 99% of exports by trade value.

The rubber & plastics industry is expected to be among the key segments benefiting from the deal, with EU’s total imports currently valued at around INR 27,670 billion (€255 billion), according to the ministry.

Meanwhile, India’s current exports of such products to the bloc stand at about INR209 billion.

With a total global rubber & plastics exports of INR1,130 billion, noted the ministry, India has “substantial scope for growth” once tariff preferences take effect.

“Enhanced access under FTA combined with India’s skilled manufacturing workforce and MSME-driven (micro, small, and medium enterprises) innovation, positions the country to increase employment, boost exports, and strengthen its global trade profile,” it added.

The Indian chemicals sector is also set to benefit significantly with the FTA providing for “zero duty on 97.5% of India’s chemical export basket by value.”

This removes tariffs of up to 12.8% and improves competitiveness across inorganic, organic and agrochemicals.

According to the factsheet, the agreement is expected to help expand exports, strengthen MSME-led industrial clusters and promote higher-value, sustainable and technologically advanced chemical products.

This would position India as a “trusted supplier” to the EU’s chemical import market, valued at INR43,570 billion.