Chemicals

India is the 6th largest producer of chemicals worldwide

Last updated: March 8, 2024

The Indian chemicals industry, contributing 3% of global supply, is projected to attain a valuation of US$300bn by 2025.

~$178 Bn

Market size of Chemicals & Petrochemicals sector in India

INR 48.05 thousand crores

The combined exports of Major Chemicals and Major Petrochemicals in the year 2022-23 (up to July 2022)

7.98%

Share of GVA in Chemical manufacturing sector

100%

FDI is allowed under the automatic route.

34.07 Lakh Tonnes

Quantum of production of certain Petrochemicals in 2023-24

4th

largest producer of agro-chemicals in the world.

11th

in the World Exports of Chemicals (excluding pharmaceutical products)

High-margin

manpower, world-class engineering, and strong R&D base.

Third Largest

consumer of polymers in the world

Cabinet approves PLI Scheme to 10 key Sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports

The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in the following 10 key sectors for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
Policy for used/worn clothing and plastic recycling units in SEZs and EOUs

To promote the recycling capabilities of production unites, this policy will be set in place.

“Scheme for extending financial assistance to sugar mills for enhancement and augmentation of ethanol production capacity

The Central Government has launched this scheme with a view to increase production of ethanol and its supply under Ethanol Blended with Petrol (EBP) Programme, especially in the surplus season and thereby to improve the liquidity position of the sugar mills.
Policy Resolution for Promotion of Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs)

To promote investment in this sector and make the country an important hub for both domestic and international markets.
Scheme for setting up of Plastic Parks

Increase investments in the sector through additions in capacity and production, creating quality infrastructure.
Centres of Excellence in Petrochemical sector

A new Central Scheme for creation of “Centres of Excellence in the field of Petrochemicals”.
Guideines for Chemicals Promotion and Development Scheme

The objective of the scheme is to offer guidelines and facilitate growth.

New Urea Policy

Cabinet has approved a revision of Energy Norms under New Urea Policy.

Petroleum, Chemical and Petrochemical Investment Regions

Projected Investment on full realization of PCPIRs is US$ 102 bn and employment generation is expected for around 33.96 lakh persons.

Indian Chemicals Industry

The chemical industry is critical for the economic development of any country, providing products and enabling technical solutions in virtually all sectors of the economy.

PLIs announced as part of Aatmanirbhar Bharat 3.0

Production Linked Incentives for ten sectors have been announced as part of the Aatmanirbhar Bharat 3,0 stimulus package.
Guidelines for Chemical Promotion and Development Scheme

The scheme will facilitate knowledge sharing about petrochemical products, and reward extraordinary work done in the domain.

Scheme for the institution of Plastic Parks

As per the scheme, the Government of India provide financial aid towards the setting up of need based State plastic parks.

Public Procurement Order - Chemicals and Petrochemicals

Issued on June 01, 2020.

Alkali Manufacturers Association of India

+91 11 22432003

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Promote sustainable growth and development of the Indian alkali industry.

YarnsandFibers.com

+91 77188 80355

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YnFx is a market information initiative delivering authentic and timely pricing data and market analysis.

Indian Chemical Council

+91-22-22047649,

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An apex national body representing all branches of the Chemical Industry in India.

Chemicals & Petrochemicals Manufacturers Association

+91-011- 23383428

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An apex forum in the country representing the Indian Chemicals & Petrochemicals Industry.

Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL)

+91-22-22021288

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CHEMEXCIL is set up by the Ministry of Commerce & Industry Government of India with the objective of promoting exports of listed items from India to various countries abroad.

Ministry of Chemicals and Fertilizers

Investment Opportunities

  • Polymers and agro-chemicals industries in India present immense growth opportunities
  • Specialty chemicals industry is worth US$32b, and accounts for 20% of the total industry
  • The Indian colorant industry, valued at US$6.8b, exports nearly 75% of its total production
  • The demand for chemicals is expected to expand by 9% per annum by 2025
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Key Investors

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive and capital establishments

Japan’s Mitsubishi Chemical is manufacturing and supplying in India.

German chemical company BASF is one of the key markets for German Chemical company BASF

DuPont, a global chemicals firm, has manufacturing and R&D centres in India.

Syngenta AG is contributing to the Indian agriculture sector through a range of products

ENABLING ENVIRONMENT

India has a well-oiled enterprise promoting machinery that is backed by strong legislative, judiciary, executive, and capital establishments

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A record US$ 19 billion worth of green capital raised in 2021 Read More
Startup India Entering Phase-II, Focus on Deep Tech Read More

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