Aphrodite Spanou
Director Science and Technology, Department for International Trade
It is my pleasure to welcome you to this UK-India virtual trade
mission.
The UK is a leading global chemical producer, respected for its broad capabilities and impressive
productivity, combined with its innovation and commitment to safety, standards and sustainability. The chemical industry is one of the largest manufacturing exporters in the UK, with a total value of exports worth approximately £36 billion in 2020 (Source: HMRC UK Trade Info, 2022).
By investing £5 billion across research, innovation and development each year, the UK remains at the cutting edge of this sector. The UK industry is innovative, dynamic and creative; it utilises science and technology to ensure product safety, develop new products, manufacture to the highest standards and meet increasing consumer demands for sustainability and green chemistry.
The chemicals sector will play a key role in the UK’s transition towards net zero through; supplying the materials needed for electric vehicle batteries, creating materials for more energy efficient homes and buildings, developing greener ingredients for use in the cosmetic and personal care industries, and utilising carbon capture technology for reuse in industrial processes.
India has a large and diversified chemicals industry, estimated to contribute £260 billion to India’s GDP by 2025. The demand for chemical imports is expected to rise, with opportunities to supply bulk chemicals, speciality chemicals, polymers and agrochemicals.
I hope you find your participation in this virtual mission positive, informative and fruitful and wish you every success for the future.
Anna Shotbolt
Deputy Trade Commissioner for South Asia (Exports, Trade
Policy and Economics) New Delhi
India and the UK are vibrant democracies and leading economies of the world. Both are home to impressive advances and capabilities in manufacturing, science and innovation, emerging and green technologies. Between them they are well placed to bring their respective strengths to address global challenges and to deliver leadership in global economic governance.
India’s economy is projected to become the world’s third largest by 2050. Trade and investment are crucial both for business and for consumers across the UK and in partner countries. We continue our work to support them and to build the UK’s trading relationships internationally. A Free Trade Agreement offers the opportunity to deepen our already strong relationship (valued at £24.3 billion in 2021). Both the UK and India have committed to concluding the majority of talks by the end of October 2022. The UK’s trading relationship with India, however, goes beyond the FTA negotiations; the 2030 Roadmap sets the ambition of doubling trade with India by 2030, providing a framework for the UK-India relationship.
The UK chemicals sector is playing a critical role in the delivery of that ambition, as well as a decarbonised economy. The sector represents nearly a quarter of UK emissions and it is therefore a crucial part of the UK’s Clean Growth Strategy which helps industrial sectors to improve their energy efficiency, as an industry. As the nation’s largest manufacturing export sector (chemicals plus pharmaceutical exports of manufactured goods is worth over £50 billion annually), the UK chemicals industry is well placed to help deliver the UK government’s clean growth agenda. It will increase our productivity, create good jobs, boost earning power for people right across the country, and help protect the climate and environment upon which we and future generations depend.
The UK is the first major economy in the world to pass laws to bring all greenhouse gas emissions to net zero by 2050. The chemicals sector is providing products and solutions to industries which is enabling them to save at least two tonnes of greenhouse gases for every one tonne the chemicals sector directly emits.
The UK chemicals sector is also a natural innovator, spending more than £5.4 bn in 2019 on research and development (which accounts for more than 20% of the UK’s overall R&D expenditure).
Looking at the chemicals sector on a global level, India is a key player, ranking 14th in exports and 8th in imports (source: IBEF report Feb 2022). Specialty chemicals constitute 22% of the total chemicals and petrochemicals market in India. The demand for specialty chemicals is expected to rise at a 12% CAGR in 2019-22. (Chemical Industry in India –Investment, FDI Policy, & Market (investindia.gov.in)). The market offers an opportunity to produce £94 billion worth of chemical products by 2023 for domestic requirements. With an ambition to strengthen the relationship between India and the UK in the chemicals sector, the Department for International Trade (DIT) is welcoming a strong delegation of UK chemical players to India who have expertise in sustainable, innovative and green technology. These companies bring with them a wide offer ranging from bio-based products to carbon neutral manufacturing. This is an excellent opportunity for Indian companies to witness UK innovation in the chemicals sector, to explore business collaborations and to develop contacts with key stakeholders from across the industry.
The bilateral trade relationship between the UK and India continues to deepen; UK companies are not just exporting but also setting up manufacturing facilities in India. For example – Scott Bader, a UK-based global chemicals company, recently announced its investment of more than £20m over the next five years into India and it expects to generate over 150 skilled manufacturing jobs here.
I look forward to seeing what new partnerships develop from this mission.
