India’s chemicals industry projected to reach up to US$ 255 billion by 2030: McKinsey report
- IBEF
- March 18, 2026
McKinsey & Company reports that India will achieve substantial growth in its chemical industry, projected to generate US$ 230 billion (Rs. 21.26 lakh crore) to US$ 255 billion (Rs. 23.58 lakh crore) by the year 2030. The chemical industry is likely to grow faster than the overall economy, driven by rising demand across multiple industrial segments, according to the report entitled "From Challenges to Possibilities: Leading India’s Chemicals Industry Through Global Headwinds." The industry currently holds a market value between US$ 155 billion and US$165 billion (Rs. 14.33 lakh crore to Rs. 15.25 lakh crore) and has achieved profitable growth during the past ten years. The report showed that Indian chemical companies achieved a total shareholder return CAGR of about 17%, which exceeded the performance of both global competitors and standard market indices. The domestic market will drive growth through higher consumer demand, stronger manufacturing operations, and the development of fast-growing specialty chemical markets.
The industry will expand through the development of multiple new business sectors. Construction-linked chemicals, for example, will reach a market size of US$ 28 billion (Rs 2.59 lakh crore) by 2030 because of India's infrastructure development and urbanization growth. The report identified a US$ 31 billion (Rs. 2.86 lakh crore) trade deficit in chemicals, with the highest losses occurring in inorganic materials and polymer products, which creates substantial chances for businesses to manufacture their products domestically instead of importing them. McKinsey's research discovered 18 different opportunities for growth within the chemical value chain, which will create new business developments for the industry. The chemicals industry in India will enhance its international competitiveness through industrial policy support, rising investments, and growing demand from the infrastructure, automotive, electronics, and agriculture sectors.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.
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