India–UK FTA to Push Plastic Exports to $800M by 2027

The Plastics Export Promotion Council (PLEXCONCIL), established on July 15, 1955, by the Ministry of Commerce & Industry, Government of India, has welcomed the newly signed India–United Kingdom Free Trade Agreement (FTA), which came into effect on May 6, 2025. The Council anticipates a significant boost to India’s plastic exports to the UK, with projections indicating a near doubling of exports to approximately USD 800 million by 2027–28.

Currently, the UK stands as India’s fourth-largest destination for plastic exports. In FY 2023–24, bilateral trade in plastics between the two nations reached USD 623 million, with Indian exports accounting for USD 445 million and imports from the UK at USD 178 million. Over the last five years, India’s plastic exports to the UK have grown at a steady Compounded Annual Growth Rate (CAGR) of 7.5%.

“The India–UK FTA is a landmark development that places Indian exporters on equal footing with EU suppliers, who previously enjoyed zero-duty access,” said Vikram Bhadauria, Chairman of PLEXCONCIL. “With import duties in the UK on all plastic tariff lines reduced from up to 6% to 0%, Indian exporters now have a competitive edge in pricing and market access. It will not only strengthen India’s export competitiveness but also open up new market segments for a wider range of plastic products.”

India’s primary plastic exports to the UK include flexible intermediate bulk containers (63053200), other articles of packaging goods (39239090), and sacks and bags made of polyethylene (39232100). These key products form the backbone of India’s plastic export market to the UK, with significant potential for growth in other categories like packaging materials, plastic films, sheets, pipes, and household items such as tableware and kitchenware. Additional export opportunities lie in products such as packaging materials, plastic films, sheets, pipes, and household items like tableware and kitchenware.

The UK imports approximately USD 33 billion worth of plastic products annually, with China, Germany, and the United States being its major suppliers. However, with the new FTA eliminating import duties of up to 6% on all Indian plastic products, India is now on equal footing with countries previously enjoying Most Favoured Nation (MFN) status, such as China and the US.

Previously, EU member states enjoyed duty-free access to the UK under preferential arrangements, offering them a pricing edge. With the India-UK FTA now in effect, Indian exporters can offer competitively priced products, enhancing their market share and positioning in the UK.

“The immediate elimination of tariffs under the India–UK FTA will help Indian exporters compete directly with global leaders like China and the U.S., opening up opportunities to scale our exports and diversify product offerings in the UK market,” said Mr. Sribash Dasmohapatra, Executive Director of PLEXCONCIL. “We are optimistic about achieving the USD 800 million export target by FY 2027–28.”

Plexconcil urges Indian manufacturers and exporters to capitalize on this trade agreement by expanding their product portfolios and strengthening compliance and quality standards to meet UK market demands.