The India–UK Free Trade Agreement is expected to take effect on July 15, 2026, and may create new opportunities for India's specialty chemicals industry.
India's specialty chemicals sector is valued at around USD 220 billion. The agreement is expected to reduce trade barriers, improve market access and support stronger cooperation between India and the UK in chemicals, advanced manufacturing and related industries.
India currently exports about USD 570.32 million worth of chemicals to the UK, accounting for around 2% of India's total global chemical exports. Products covered include fertilizers, industrial chemicals and petrochemical products.
However, the industry is still seeking more clarity on rules of origin, which will determine which products can benefit from preferential tariff treatment under the agreement.
For chemical companies, the FTA may support trade growth, supply chain cooperation and broader opportunities in specialty chemicals, coatings, adhesives and industrial applications.