Skip to main content
    The EU-India FTA is coming — prepare your business for tariff-free trade

    Chemicals & Petrochemicals

    97.5% of chemical tariff lines covered — up to 12.8% duties eliminated

    India-EU chemicals trade sits at roughly €6.8 billion annually and is growing at 7.1% CAGR, driven by India's expanding downstream processing capacity and Europe's appetite for cost-competitive intermediates. Indian exporters — concentrated in Gujarat's Dahej-Ankleshwar belt, the Mumbai-JNPT corridor, Visakhapatnam, and Chennai — supply everything from organic intermediates and dyes to specialty polymers and agrochemical actives. On the European side, German, Dutch, and Belgian chemical majors source Indian feedstocks while pushing high-value specialty chemicals, catalysts, and performance materials into India's fast-growing domestic market.

    The India-EU FTA covers 97.5% of chemical tariff lines, eliminating duties of up to 12.8% across key HS chapters (28–38). For Indian exporters, this closes the price gap against Chinese and Middle Eastern competitors who have long enjoyed preferential access via other FTAs. For European buyers, it means cheaper procurement of intermediates without sacrificing REACH-compliant supply chains. The phase-out schedule runs 3–7 years depending on sensitivity, with most organic chemicals and polymers front-loaded for immediate or Year 1 elimination.

    Compliance is the gatekeeper. Every substance entering the EU must be REACH-registered (or covered by an Only Representative), CLP-classified, and SDS-documented in the destination language. ECHA enforcement has tightened since 2024, and border rejections for non-compliant shipments are climbing. Indian exporters who invest in pre-registration and GHS-aligned documentation will capture disproportionate share as smaller competitors get screened out.

    Sector at a Glance

    Bilateral Trade Value

    ~€6.8B

    Growth Rate

    +7.1% CAGR

    Indian Exporters (approx.)

    ~5,600

    Key Production Clusters

    Gujarat (Dahej, Ankleshwar)Mumbai (JNPT corridor)VisakhapatnamChennai