Indian Economy News

India witnesses significant Growth in the Chemicals & Petrochemicals Sector over the last 12 Years

India’s chemicals and petrochemicals sector has witnessed significant growth over the past 12 years, driven by policy reforms, infrastructure development, investment promotion and capacity-building initiatives undertaken by the Department of Chemicals & Petrochemicals. These measures have strengthened domestic manufacturing, encouraged innovation and supported the vision of Viksit Bharat 2047 and Atmanirbhar Bharat. Three operational Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) at Dahej (Gujarat), Visakhapatnam-Kakinada (Andhra Pradesh) and Paradeep (Odisha) have attracted investments worth Rs. 3.4 lakh crore (US$ 40.54 billion), generated employment for nearly 3.7 lakh people and facilitated the establishment of more than 2,200 chemical manufacturing units. Foreign Direct Investment (FDI) inflows into the sector reached Rs. 1,04,895 crore (US$ 12.51 billion) during 2014-2026, compared with Rs. 45,240 crore (US$ 8.78 billion) during 2004-2014. To promote quality manufacturing and curb sub-standard imports, the Government has also implemented 37 Quality Control Orders (QCOs), while approving 10 Plastic Parks, including four with fully completed infrastructure.

The Government has further strengthened the sector through investments in research, innovation and skill development. The Central Institute of Petrochemicals Engineering & Technology (CIPET) has expanded its network to 51 centres, including 19 established since 2014, and has trained nearly 6.72 lakh professionals while completing 8.53 lakh technology support service assignments. The Institute of Pesticide Formulation Technology (IPFT) has transferred 64 pesticide formulation technologies to industry and received Rs. 28.69 crore (US$ 3.01 million) from the Department of Biotechnology to establish a Biofoundry Facility for biopesticides and advanced biological formulations. In addition, the Union Cabinet has approved the BHAVYA Rasayan Scheme with an outlay of Rs. 3,030 crore (US$ 317.58 million) to establish three plug-and-play Chemical Parks, strengthening domestic manufacturing, reducing import dependence and enhancing global competitiveness. Collectively, these initiatives are expected to accelerate investment, boost exports, generate employment and reinforce India’s position as a global hub for chemicals and petrochemicals manufacturing.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.