Chemical Industry india

The Indian chemicals industry is highly diversified, covering >80,000 products and employing >2 million people.

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. ​

* Exports of Organic and Inorganic Chemicals reached Rs. 7,13,090 crore (US$ 82.4 billion) during April-December 2024.​

* 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.

The Indian chemical industry is currently valued at US$ 220 billion and is expected to reach US$ 300 billion by 2030 and US$ 1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.

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 Union Budget 2025-26 the government allocated Rs. 1,61,965 crore (US$ 18.7 billion) to the Ministry of Chemicals and Fertilizers.​

The Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) set up at Paradip has attracted investments worth US$ 8.84 billion (Rs. 73,518 crores) resulting in employment of about 40,000 people.

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

Policy Support

Increasing
Investments
and spending

* FDI inflows in the chemicals sector (other than fertilizers) reached Rs. 1,39,776 crore (US$ 22.8 billion) between April 2000-September 2024.​

* 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, 2025

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