The conference was organised by the Plastics Export Promotion Council (PLEXCONCIL) under the Ministry of Commerce & Industry, Government of India, in association with Central Institute of Petrochemicals Engineering & Technology (CIPET), under the Department of Chemicals & Petrochemicals, Government of India. The theme of the conference was “India’s Future in Polymers, Innovations and Export Growth.”
Speaking at a panel discussion on “FTAs – Fact or Fiction: Has India’s recent FTAs helped exporters?”, held the panelists said FTAs should be viewed as strategic instruments that provide market access, while industry must focus on execution to translate those opportunities into export growth.
Moderating the session, Rajalakshmi Devaraj, Additional Director General of Foreign Trade (DGFT), Chennai, said India’s FTAs are intended to build long-term partnerships with individual countries by facilitating technology collaboration, investment and integration into global value chains. She urged businesses to understand the provisions of individual agreements, identify opportunities relevant to their products and position themselves within global supply chains rather than viewing FTAs only as a means to access new markets.
Sriram, Partner, EY, said about half of India’s merchandise exports are currently covered under FTAs and the share is expected to rise further as recently concluded agreements come into effect.
India continues to export a substantial volume of plastic raw materials and intermediate products, highlighting the need to increase exports of value-added products such as engineering plastics to maximise the benefits of trade agreements, he noted.
Each FTA creates opportunities across hundreds of product lines, but companies must analyse product-specific opportunities, build manufacturing capacity and adopt sustainable production practices to remain globally competitive The success of FTAs would depend not just on signing agreements but on effective implementation, awareness and the industry’s ability to utilise the opportunities created under them, Sriram said.
He also urged exporters to adopt a strategic approach to international markets by evaluating supply chain routes, rules of origin and country-specific advantages under different FTAs.
In certain cases, manufacturers could improve competitiveness by using partner countries as gateways to larger markets instead of exporting directly from India, Sriram said.
Vijay Kumar Vaddadi, Economist and International Business Strategy Consultant, said FTAs provide market access but not market entry.
He highlighted that Indian companies would need to invest in research and development, digital technologies and innovation while consistently meeting international quality standards to compete successfully in overseas markets.
Vaddadi, also observed that lower import duties under FTAs would expose domestic manufacturers to greater competition from overseas companies, making it important for Indian businesses to maintain global quality standards for both domestic and export markets.
Industry associations, research institutions and export promotion bodies have a key role to play in helping MSMEs build capabilities and understand global market requirements, he said.
Sharing an industry perspective, Ali Asger SJ, Director, Polyhose, said the company’s export-led strategy had enabled it to benefit from FTAs by improving logistics efficiency and reducing inventory costs.
He cited the India-Australia FTA as an example and said it enabled the company to export directly to the market instead of routing shipments through Singapore, improving overall competitiveness.
Exporters must increasingly prepare for international sustainability requirements, including carbon emission reporting and product certifications, particularly in European markets, Vaddadi added.
The discussion also highlighted the growing importance of addressing non-tariff requirements such as environmental compliance, traceability and carbon-related regulations, which are becoming increasingly significant in developed markets. The panelists said the benefits of FTAs would ultimately depend on the industry’s ability to improve competitiveness through innovation, technology adoption, sustainability and compliance with global standards, rather than relying solely on tariff concessions.