Ongoing negotiations for a Free Trade Agreement between India and the European Union could deliver transformative tariff reductions for Indian plastic exporters, potentially eliminating duties of 6.5% to 12% on a wide range of plastic products entering the EU market. The deal, if concluded, would create a significant competitive advantage for Indian manufacturers over rivals from countries without preferential trade access.
EU importers are increasingly seeking to diversify sourcing away from China and other high-risk suppliers, and India is positioning itself as a reliable alternative with strong manufacturing capabilities. An FTA would accelerate this shift, particularly for high-margin products like medical plastic components, automotive interior parts, and specialty packaging.
Indian negotiators are working to ensure that the plastics sector benefits fully from tariff elimination while maintaining adequate safeguards for domestic industries. Industry associations are actively engaging with trade negotiators to ensure that plastic product classifications, rules of origin requirements, and phased tariff reduction timelines serve the sector’s interests.
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