Chemical Industry india

India is the second-highest producer and consumer of chemical fertilisers in the world.

Advantage India

Growing
Demand

* Rise in demand from end-user industries such as food processing, personal care and home care is driving development of different segments in India’s specialty chemicals market.

* Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040.

* India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP.

Growing Demand

Opportunities

* India’s specialty chemicals companies are expanding their capacities to cater to rising demand from domestic and overseas.

* With global companies seeking to de-risk their supply chains, which are dependent on China, the chemical sector in India has the opportunity for a significant growth.

* The Dahej PCPIR project in Bharuch, has attracted an investment of Rs. 1 lakh crore (~US$ 12 billion) and is expected to generate 32,000 jobs.

Opportunities in Chemical Industry

Policy
Support

* PLI schemes were introduced to promote Bulk Drug Parks, with a budget of Rs. 1,629 crore (US$ 213.81 million).

* Under the Interim Union Budget 2024-25 the government allocated Rs. 192.21 crore (US$ 23.13 million) to the Department of Chemicals and Petrochemicals.

* Government to open 25,000 Jan Aushadhi Kendras to make medicines available at affordable prices.

* The PLI plan for the National Programme on Advanced Chemistry Cell Battery Storage has been approved by the Union Cabinet as of May 2021.

Policy Support

Increasing
Investments
and spending

* FDI inflows in the chemicals sector (other than fertilizers) reached US$ 22.07 billion between April 2000-December 2023.

* An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025.

* Prime Minister, Mr. Narendra Modi, laid the foundation stone of development projects worth more than Rs. 50,700 crore (US$ 6.11 billion) on September 14, 2023

Increasing Investments and Spending
Last updated: May, 2024

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