EU-India Free Trade Agreement Targets Chemicals and Plastics

[[EN]## EU-India Free Trade Agreement Reshapes Chemicals and Plastics Markets: Tariffs Reduced, Compliance Emphasized

Brussels/New Delhi – The European Union and India announced on January 27, 2026, the conclusion of free trade agreement negotiations aimed at eliminating tariffs on a substantial volume of their chemicals and plastics trade. The agreement facilitates market access in both directions: Indian exporters gain improved access to EU markets, while European suppliers are set to benefit from cost advantages in India's growing downstream sectors.

The free trade agreement will remove tariffs on 97.5% of chemical exports from India to the EU. Concurrently, India's tariffs on EU chemical and plastic imports are expected to fall from current levels of up to 22% for chemicals and 16.5% for plastics to zero for most products. This is anticipated to lower input costs for Indian downstream users while simultaneously increasing competitive pressure on domestic producers within India.

Industry analysts suggest that the benefits of the agreement will largely accrue to companies capable of meeting stringent regulatory requirements, such as the EU's REACH and PPWR regulations. Producers of specialty chemicals and performance plastics, who are prepared to adhere to these advanced standards, are expected to see the most significant gains. Furthermore, enhanced access to EU markets could also drive faster market share expansion for India's specialty chemical exports.

The precise timeline for the application of the agreement hinges on further legal review and approval processes. However, it is projected to fundamentally alter strategic partnerships and value chains across both economic regions. Moving forward, companies that prioritize regulatory compliance and product development are anticipated to be the ones that differentiate themselves and succeed in these newly accessible markets.]