The India-UK Free Trade Agreement (FTA) signed recently does more than improve trade equations. Systematisation of the trade system augurs well for the agricultural and agrochemical sectors. The structuring of the system is certain to influence supply chains, iron out regulatory friction and even improve competitiveness among key players across regions. The FTA does more – it is a template for rebalancing global agrochemical flows amidst shifting geopolitical realignment.
The agrochemicals space in both countries has unique advantages. While India exports agrochemicals worth approximately $5.5 billion annually, the UK accounts for less than 2 per cent of this volume (FICCI, 2023). The FTA could also be leveraged by British enterprises to leverage India’s vast domestic market—valued at over $6.9 billion in FY24 (ICRA)—to export high-end pre-emergent and bio-stimulant formulations, particularly in the emerging sustainable agriculture segment.
The FTA opens a new trajectory for Indian firms seeking access to the UK’s $2.8 billion agrochemical market—dominated by multinationals with Eurocentric supply chains. The bilateral movement will likely foster product innovation tailored to tropical and temperate agro-climatic zones alike.
