India's chemicals and petrochemicals industry projected to reach $300 billion by 2030
India’s chemicals and petrochemicals, currently valued at around $220 billion, is projected to reach $300 billion by 2030 and $1 trillion by 2040, a government factsheet said on Saturday.
India is the sixth-largest producer of chemicals in the world and the fourth-largest in Asia. Its products serve diverse sectors, including pharmaceuticals, textiles, construction, automobiles, electronics and consumer goods.
India permits 100 per cent FDI through the automatic route for most chemical sectors. Under the Automatic Route, investment by a person resident outside India does not require prior approval from the government.
FDI inflows in the sector reached Rs 1,04,895 crore during 2014–2026, more than double the Ts 45,240 crore recorded during 2004–2014.
The production of major chemicals and petrochemicals increased from 45,638 thousand metric tonnes (MT) in 2015–16 to 58,617 thousand MT in 2024–25.
This momentum complements initiatives to expand industrial capacity, develop specialised manufacturing hubs and enhance infrastructure across the sector.
India also holds prominent positions in specialised chemical segments. It is the second-largest manufacturer and exporter of dyes and 3rd largest exporter of agrochemicals globally.
There are approximately 13,000 large-scale units and 4.45 lakh micro, small, and medium enterprises (MSMEs) in the sector. Several initiatives are advancing chemical manufacturing, research and industrial infrastructure.
These include dedicated chemical parks, funding opportunities and measures promoting quality and investment. Together, these efforts seek to strengthen India’s participation in global value chains, according to the factsheet.
The Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme, approved in July 2026, aims to establish three dedicated chemical parks.
Each park will cover at least 8 square kilometres (2,000 acres) of land.
The Centre will provide grants of up to Rs 1,000 crore per park, subject to a minimum contribution of Rs 500 crore by the concerned State Government.
The scheme has a total financial outlay of Rs 3,030 crore. Of this, Rs 3,000 crore is allocated for common infrastructure and basic utilities, while Rs 30 crore covers administrative expenditure. It will run for five years, from FY 2026–27 to FY 2030–31.
Launched in November 2025, the Research, Development and Innovation (RDI) Scheme has a corpus of Rs 1 lakh crore to catalyse private-sector investment in research and innovation.
It provides long-term financing and refinancing on favourable terms for transformative projects. The scheme aims to accelerate advanced technology adoption, strengthen industrial competitiveness and promote self-reliance in critical and emerging technology areas.
