Today, the UK signed a landmark trade agreement with India. As part of this historic moment, the Prime Minister has announced nearly £6 billion in new investment and export wins, creating over 2,200 British jobs across the country.

 

The Chemical Industries Association said:

“The signing of the Free Trade Agreement between India and the UK today is a hugely significant step forward and I hope will benefit both countries. The UK chemical sector and the Indian chemical sector work closely on a number of areas including research, manufacturing and supply. The focus on defence and security, climate and health are all areas that the chemical and pharmaceutical sectors already make a huge contribution towards.

 We look forward to scrutinising the detailed text. Trade Agreements must mean more than simply reduced tariffs and we expect to see enhanced market access opportunities alongside the protection of critical IP. Both countries will make significant financial and human capital investments in each other’s chemical and pharmaceutical sectors to deliver a global presence.

 I hope that the process of ratification is swift and look forward to companies taking advantage of simpler and more cost-effective trade with India from 2026.”

  • In 2024 UK exports of chemicals to India totalled £424million with imports of £683million.
  • Businesses who make chemical products and solutions are integral to something like 96% of all manufactured goods.  Whether it is ingredients for food and medicines; paints and coatings for cars and planes or materials for mobile phones and electric vehicle batteries, the chemical industry is truly the “industry of industries” – also playing a critical role in the nation’s response to Covid-19 through its supply of hand sanitiser, PPE and vaccine ingredients.
  • Chemical businesses are located throughout the UK, with many of them clustered together in the North East of England, North West of England and Central Scotland.  These factories and laboratories, operated by a highly trained and skilled workforce, make a significant contribution towards the UK’s productivity performance.  
  • Roughly 140 thousand people are employed in the sector and nearly half a million have roles that are dependent on the sector. Chemical workers typically earn around 21% more than other manufacturing industries and almost 27% more than the average worker.
  • From Runcorn to the Humber Bank; from Teesside to Grangemouth, chemical businesses and their employees right across the country are essential to the Government’s levelling-up agenda.
  • We are the country’s second biggest manufacturing exporters, sending goods to the value of more than £61 billion to other countries. The EU represents our most important market, but we continue to work closely with Government to inform and secure UK trade deals with other key chemical markets such as Japan and the USA. 

 

 

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