Effects of FTA between EU and India on Industrial Rubber Products
The recent free trade agreement between India and the European Union marks a significant milestone for global manufacturing and exports. As one of the world’s largest traders, the European Union represents a critical market for Indian exporters particularly in engineering driven sectors such as industrial rubber and polymer products. This trade deal is expected to reshape market access, pricing competitiveness, and long term sourcing strategies for European buyers.
For manufacturers and buyers of industrial rubber and PTFE products including rubber diaphragms, gaskets, seals, O-rings and other engineered components. This agreement represents a major strategic shift.
Overview of the India EU Free Trade Agreement
The India EU trade agreement aims to reduce or eliminate tariffs on a majority of goods traded between the two regions over a phased period. Industrial and engineered products are among the key focus areas, to improve market access, simplify trade procedures, and strengthen supply chain operations.
Once fully implemented, the agreement is expected to lower import duties on Indian exports to the EU, making Indian manufactured components more competitive compared to suppliers from other countries.
Impact on Industrial Rubber Product Exports
Industrial rubber products are widely used across European industries such as automotive, chemicals, pharmaceuticals, energy, and process engineering.
Many of these products have faced moderate EU import tariffs, which affected landed costs and price flexibility. Under the new trade deal, tariffs on a big number of industrial products are expected to be reduced or entirely eliminated. This shift is particularly beneficial for high volume, precision engineered rubber and PTFE components supplied.
Tariffs on selected Industrial Rubber Products
| Products/ HS Codes | EU Import Tariff | Expected EU Import Tariff after FTA |
|---|---|---|
|
Rubber O-rings |
6.5% tariff standard before trade agreement |
0% |
|
Rubber Seals |
6.5% tariff before agreement |
0% |
|
Rubber Gaskets |
6.5% tariff before agreement |
0% |
|
Rubber Diaphragms |
6-15% depending on specific subcode |
0% |
|
PTFE Components |
Up to 16.5% |
0% |
Benefits for Industrial Rubber & PTFE Exports
Lower Landed Cost and Better Price Competitiveness
European buyers often compare total landed cost including tariffs when choosing suppliers. With duties moving toward zero under the FTA, Indian manufacturers gain a clear cost advantage over non FTA suppliers, making products such as rubber diaphragms, PTFE seals and gaskets more attractive in terms of pricing.
Increased Export Demand & Supply Chain Integration
Reduced or eliminated tariffs create incentives for European OEMs and distributors to diversify their supplier base. India, with strong engineering capabilities and expanding export infrastructure, becomes a stronger candidate for long term supply agreements in industrial rubber and polymer components.
Strengthened Position in Mid Value & Technical Components
While commodities see gains, the trade deal particularly benefits technically demanding products such as precision moulded diaphragms, PTFE components for chemical resistance, and engineered sealing solutions because these rely on competitive quality, price and reliability.
Opportunities for Value Added Rubber and PTFE Products
The trade agreement also opens doors for higher value rubber and PTFE products, such as custom diaphragms, and precise PTFE parts. As tariffs reduce, European buyers may be more willing to source specialized components from India instead of limiting procurement to local suppliers.
This creates opportunities for Indian exporters to move up by offering:
- Custom designed rubber solutions
- Application specific PTFE components
- Engineering support and collaborative product development
The India EU free trade agreement is set to positively impact the export of industrial rubber and PTFE products by reducing tariff barriers and strengthening trade relations. For Indian manufacturers, this translates into enhanced competitiveness, broader market access, and long term growth opportunities in Europe.
At Arvico Rubber Industries, we are well positioned to support European OEMs with high performance rubber and PTFE products that meet international standards and evolving industry requirements.
