India`s chemical industry targets $1 trillion turnover by 2040
The Indian chemical industry aims to outpace China as a global leader in the sector through innovation, AI, and sustainability with a target of surpassing the $1 trillion mark by 2040.
The Indian Chemical Council (ICC), the apex national body of the Indian chemical industry, hosted the 18th annual India Chemical Industry Outlook conference and exhibition here, with the theme "Engineering the Future: Reinventing the India Chemicals Sector for Enhanced Resilience".
A key platform for policymakers, industry leaders, and investors, the event comes as India's $220 billion chemical industry gears up to surpass $1 trillion by 2040, reinforcing the nation's position as a global chemical hub.
A white paper by McKinsey & Company, titled 'Building Resilience for Global Leadership: The Path Forward for India’s Chemicals Industry', was released at the conference and exhibition. The report highlights a new period for the global chemicals industry. It also discusses India’s chemical industry, and the potential for its high growth and resilience. Lastly, the report covers the way forward for Indian chemical companies.
ICC President and SRF Ltd's Joint Managing Director Kartik Bharat Ram welcomed a large gathering of more than 700 delegates. In his keynote address, he said: "With rising domestic consumption, shifting supply chains, and competitive costs, the sector is poised for significant growth."
"Government support and technological advancements further drive this momentum. Representing over 80 per cent of the industry, ICC received the prestigious 2024 OPCW Hague Award for its commitment to chemical safety and security. Now, our focus must be on positioning India as a global powerhouse in chemicals," he added.
Secretary, Department of Chemicals & Petrochemicals, Nivedita Shukla Verma, addressed the event virtually as the Chief Guest. She emphasised the theme’s relevance amid the evolving geopolitical landscape and India's vision for Viksit Bharat 2047.
Highlighting the need for increased investments, R&D, and global value chain integration, she announced the approval of five new Centres of Excellence, with plans for three more. A dedicated portal now connects 1,000 industries with 50 research institutions, fostering industry-academia collaboration.
Joint Secretary, Department of Chemicals & Petrochemicals, Deepankar Aron delivered the keynote address highlighting the impact of global geopolitical shifts and the urgent need for technological reinvention in the chemical industry.
He emphasised that achieving Viksit Bharat 2047, as envisioned by the Prime Minister, requires rapid economic expansion - targeting a $26 trillion economy and a per capita income exceeding $14,000.
With chemical exports contributing 7 per cent of India’s merchandise exports ($45 billion last year) and FDI inflows nearing $20 billion over two decades, the sector remains a key growth driver.
Brussels-based European Chemical Industry Council (CEFIC) Director General Marco Mensink spoke on the geopolitical development and the opportunities which are unfolding for India’s chemical industry.
The conference focuses on growth, market expansion, and the impact of AI, technological advancements, and sustainability on India's chemical sector. The 18th ICC Conference explored digital transformation, AI integration, and sustainability-driven innovations. Experts shared case studies on net-zero initiatives, including carbon capture, process automation, and sustainable feedstocks. The role of hydrogen-based production in reducing carbon footprints and government-backed R&D incentives for energy-efficient processes was also highlighted.
India is emerging as a leader in eco-friendly speciality chemicals amid a global shift toward climate-conscious production. With rising investments in blockchain-backed supply chains, AI-driven quality control, and smart manufacturing, the industry is undergoing a tech-driven transformation shaping its long-term competitiveness, according to the ICC statement.
