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.

* In July 2023, Global Chemicals and Petrochemicals Manufacturing Hubs in India (GCPMH 2023) was organized in Delhi, India.

Opportunities in Chemical Industry

Policy
Support

* The government plans to introduce a production-linked incentive (PLI) scheme to promote domestic manufacturing of agrochemicals.

* Under the Union Budget 2023-24 the government allocated Rs. 173.45 crore (US$ 20.93 million) to the Department of Chemicals and Petrochemicals.

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

* In April 2023, the Cabinet approved the National Medical Devices Policy, 2023.

Policy Support

Increasing
Investments
and spending

* FDI inflows in the chemicals sector (other than fertilisers) reached US$ 21.71 billion between April 2000-September 2023.

* The Department of Chemicals & Petrochemicals intend to bring PLI in the chemical & petrochemical sector and will redraft the Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) guidelines.

Increasing Investments and Spending
Last updated: Feb, 2024

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