India-EU Free Trade Agreement Boosts Growth for Plastics Industry

The **PlastIndia Foundation** has expressed strong support for the newly announced **India-European Union (EU) Free Trade Agreement (FTA)**, which is anticipated to significantly enhance trade and investment opportunities for India’s plastics industry. The agreement aims to improve market access and foster technological collaboration, positioning India as a vital player in the global plastics market.

Market Opportunities and Export Growth

According to **Ravish Kamath**, President of the PlastIndia Foundation, the FTA is set to unlock new avenues for growth within India’s plastics and petrochemicals sector. By reducing both tariff and non-tariff barriers, the agreement is expected to promote innovation-driven manufacturing.

Kamath noted, “The India–EU FTA will strengthen India’s position as a global manufacturing and export hub for plastics and allied products. It will facilitate greater integration of Indian industry with European value chains, promote sustainable materials, and enable technology transfer—especially in recycling, circular economy solutions, and advanced polymer applications.”

Currently, the **European Union** serves as India’s second-largest export destination for plastics, with exports valued at approximately **USD 3.7 billion**. Industry forecasts suggest an untapped potential of nearly **USD 9 billion** that the FTA could help realize. Kamath emphasized, “This landmark agreement is expected to drive multifold growth for the sector by enhancing competitiveness, expanding market access, and encouraging higher value-added exports. At present, our total plastic exports stand at **USD 10 billion** in 2025.”

Strategic and Industrial Impact

The FTA is anticipated to spur growth in value-added plastic products, attract foreign direct investment, and create job opportunities across the sector. Moreover, it aligns with national initiatives such as **Make in India** and **Atmanirbhar Bharat**, which aim to bolster local manufacturing capabilities.

Kamath pointed out that this agreement provides Indian manufacturers, particularly micro, small, and medium enterprises (MSMEs), with the chance to elevate quality standards and implement global best practices, thereby enhancing their competitiveness in international markets.

He reiterated the Foundation’s commitment to collaborating with policymakers and stakeholders to ensure the effective implementation of the FTA, maximizing its benefits for the Indian plastics industry.

As the FTA moves forward, the PlastIndia Foundation remains optimistic about its potential to reshape the landscape of India’s plastics sector, fostering sustainable growth and innovation.