India sees significant growth in Chemicals & Petrochemicals sector over last 12 years: Government
The Department of Chemicals & Petrochemicals (DCPC), under the Ministry of Chemicals & Fertilizers, has undertaken significant policy reforms, infrastructure development, capacity building, skill development, quality enhancement, and investment promotion initiatives for the chemical and petrochemical sector, over the past twelve years. The Chemical Promotion and Development Scheme (CPDS), a sub-scheme under the New Scheme of Petrochemicals (NSP), a Central Sector Scheme implemented by the Department, has supported the development of the chemical and petrochemical sector through conferences, exhibitions, training programmes, studies, and awareness-building initiatives.
The three operational Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) at Dahej (Gujarat), Visakhapatnam-Kakinada (Andhra Pradesh), and Paradeep (Odisha) have collectively attracted investments of over Rs 3.4 lakh crore, generated approximately 3.7 lakh employment opportunities, and facilitated the establishment of more than 2,200 chemical manufacturing units. To safeguard consumer interests, promote quality manufacturing, and curb the import of sub-standard products, the department has issued Quality Control Orders (QCOs) from time to time. At present, a total of 37 QCOs are in force. India's Foreign Direct Investment (FDI) policy, which permits 100% FDI under the automatic route in most chemical sectors, has also contributed significantly to the sector's growth. During 2014-2026, the sector received FDI inflows of Rs 1,04,895 crore, more than double the Rs 45,240 crore received during 2004-2014.
The Department of Chemicals & Petrochemicals has expanded infrastructure support for downstream plastic processing industries. 10 Plastic Parks have been approved across the country. Four Plastic Parks have achieved 100% infrastructure completion, including 3 completed during 2025–26. Furthermore, the department has expanded the network of the Centre of Excellence to support research and innovation. The 18 Centres of Excellence have filed 85 patents, published over 600 research papers, and developed 105 new technologies/products.
Further strengthening the sector, the Union Budget 2026-27 announced a new scheme to establish three Chemical Parks on a cluster-based plug-and-play model to strengthen domestic manufacturing, reduce import dependence, and enhance global competitiveness. The Union Cabinet has approved BHAVYA Rasayan Scheme (Bharat Audyogik Vikas Yojana Rasayan) for setting up three Chemical Parks, with a provision of over Rs 3030 crore. The proposed parks are expected to support the chemical sector and the integrated circular economy principle.
