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CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council
(Set-up by Ministry of Commerce and Industry, Govt of India)
Jhansi Castle, 4th floor, 7-Cooperage Road, Mumbai - 400 001.
Tel: +91-22- 69821200-206
info@chemexcil.in Web : https://chemexcil.in
EPC:LIC:FTA:IND-UK:CHEM:OPP:2025-26:589 25th July, 2025
TO,
ALL MEMBERS OF THE COUNCIL
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India–UK Free Trade Agreement Signed – Opportunities for Indian
Chemical Exporters: Regarding
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Dear Members,
Greetings from CHEMEXCIL!
As you might have aware that the India–United Kingdom Free Trade Agreement (India–UK FTA) has been officially signed on 24th July 2025 in London by Hon'ble Prime Minister Shri Narendra Modi and UK Prime Minister Mr. Keir Starmer.
This is a landmark agreement, an important step forward in strengthening bilateral trade and investment between the two nations and it presents a major opportunity for India’s Chemical sector along with all other sectors.
The key highlights relevant to the Chemical Sector is Indian Chemical exporters will get zero-duty market access for more than 1000 Chemical tariff lines, covering a wide range of chemical products.
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India’s Chemical Exports to the UK stand at USD 570.32 million during FY 2024-25 which accounts for approximately 2% of India’s total global chemical exports.
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The UK’s total chemical imports form the world is USD 35.11 billion of which India currently captures only USD 570.32 million, indicating significant untapped potential.
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This FTA is expected to boost India's chemical exports to the UK by 30%–40%, during coming financial year i.e., FY 2025–26.
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Indian Chemical Exporters will have a competitive advantage through duty-free tariff access, they can explore the long-term partnerships, joint ventures, and technology exchange. It is a big boost for MSMEs and exporters of niche chemical products.
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Moreover, the UK REACH deadline is extended (Ref. https://www.hse.gov.uk/reach/grandfathering-registrations.htm)
The official India UK FTA document is available on below link
https://www.commerce.gov.in/international-trade/trade-agreements/india-united-kingdom-comprehensive-economic-and-trade-agreement/
Members are requested to go through the relevant paras of their product sector, also refer in above link
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Annex 2A (Schedules of Tariff Commitments for Goods)
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Annex 2A-a: (Schedule of Tariff Commitments of India)
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Annex 2A-b (Schedule of Tariff Commitments of the United Kingdom)
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Annex 3A Product Specific Rules of Origin
By utilizing the preferential tariff structure, you can increase the exports of your products and improve market penetration in UK and contribute to India’s overall chemical export growth. We request members to review the important links of India-UK FTA provided above.
IMPORTANT NOTE: The India-UK FTA is not yet in force. Its effective date is still to be announced, as it requires ratification by both countries, including approval by the UK Parliament. Implementation is expected in the coming months. Therefore, immediate preferential access to the UK is currently unavailable
CHEMEXCIL will organise a detailed session on in-depth analysis of India-UK FTA with focus on Chemical Sector in coming days. The detailed circular will be issued to members once we receive the confirmation from faculty.
In case of any queries or issues regarding India-UK FTA, please mail us at pw@chemexcil.in with a copy to dg@chemexcil.in.
Thanks and Regards
Raghuveer Kini
Director General
CHEMEXCIL
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