VCI welcomes EU-India trade agreement

Frankfurt, Germany — The German Chemical Industry Association (VCI) has welcomed the trade agreement between the European Union and India, saying it could strengthen exports and supply chains for the chemical and pharmaceutical industries.

In a 27 Jan statement, VCI managing director Wolfgang Grosse Entrup called the agreement “a milestone for European industry” and said it would improve access to one of the sector’s key growth markets.

“For the chemical and pharmaceutical sectors, it strategically strengthens access to one of the key growth markets of the coming decades,” Grosse Entrup said.

The agreement, he added, sends “an important signal” on the EU’s commitment to trade partnerships.

The EU and India concluded negotiations for an ambitious free trade agreement on 27 Jan, with the aim to strengthen economic and political ties between the world's second and fourth largest economies.

Trade volumes between Germany and India remain modest compared with other regions, but VCI said India’s importance is growing due to its expanding economy and rising demand for higher-value products.

In 2024, Germany’s chemical and pharmaceutical exports to India totalled €2.6 billion, including €2.2 billion in chemicals and €380 million in pharmaceuticals.

Imports from India reached €2.8 billion, split evenly between chemicals and pharmaceuticals.

India currently accounts for less than 2% of Germany’s chemical and pharmaceutical exports and imports, compared with more than 40–50% for the EU and other regions.