India’s ambition to emerge as a global manufacturing powerhouse will depend not only on the strength of its traditional industries but also on its ability to build capabilities in strategically important sectors. The chemicals and petrochemicals industry is one such sector. Often operating behind the scenes, it provides the raw materials and essential inputs that keep a wide range of industries running, from pharmaceuticals and textiles to automobiles, electronics, construction and agriculture. Its growth, therefore, is closely linked to the country’s broader industrial and economic ambitions.
India has already established a significant presence in the global chemical industry. It is the sixth largest producer of chemicals in the world and the fourth largest in Asia. Valued at approximately USD 220 billion, the sector is projected to grow to USD 300 billion by 2030 and USD 1 trillion by 2040. These projections reflect considerable potential, but they also underline the scale of the task ahead. Achieving such growth will require more than expanding production. It will demand sustained investment, technological advancement, stronger research capabilities and a manufacturing ecosystem capable of competing with established global players.
The importance of the sector is also evident in its extensive industrial base. India has approximately 13,000 large scale manufacturing units and 4.45 lakh micro, small and medium enterprises. The country is the world’s second largest manufacturer and exporter of dyes and the third largest exporter of agrochemicals. Such strengths provide a valuable foundation for future expansion. The challenge now is to translate this existing capacity into greater value addition, improved productivity and a stronger presence in international markets.
One of the most important requirements for achieving this objective is the development of reliable industrial infrastructure. Chemical manufacturing involves complex processes that require specialised facilities, efficient logistics, utilities and effective waste management systems. The Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) represent an important step in this direction. The three operational regions at Dahej in Gujarat, Visakhapatnam and Kakinada in Andhra Pradesh, and Paradeep in Odisha have collectively attracted investments of ₹3.4 lakh crore, generated 3.7 lakh jobs and facilitated the establishment of more than 2,200 manufacturing units.
These figures demonstrate the value of an integrated industrial approach. By bringing manufacturing facilities, transport networks, ports, water supply and common treatment infrastructure within designated regions, PCPIRs help create an environment conducive to industrial investment. The proposed development of three dedicated chemical parks under the BHAVYA Rasayan Scheme is another significant initiative. With a total financial outlay of ₹3,030 crore, the scheme aims to provide ready to use infrastructure and common facilities for chemical manufacturers. Its success, however, will ultimately depend on effective implementation, environmental compliance and the ability to attract long term private investment.
The expansion of the downstream industry is equally important. India’s chemical sector cannot realise its full potential by focusing only on the production of basic chemicals and petrochemical intermediates. Greater value addition must take place within the country. Plastic Parks, designed to strengthen domestic plastic processing, are intended to address this requirement. Ten such parks have been approved, four of which have achieved complete infrastructure development. By encouraging domestic processing, investment and exports, these facilities can help strengthen the links between raw material producers and finished product manufacturers.
Investment trends also point towards growing confidence in the sector. India permits 100 per cent foreign direct investment through the automatic route in most chemical industries. Between 2014 and 2026, the sector attracted FDI inflows of ₹1,04,895 crore, compared with ₹45,240 crore during the preceding decade from 2004 to 2014. Production of major chemicals and petrochemicals also increased from 45,638 thousand metric tonnes in 2015 to 16 to 58,617 thousand metric tonnes in 2024 to 25. Sustaining this momentum will require a business environment that encourages investment while ensuring predictability in regulations and access to modern technology.
Yet infrastructure and investment alone cannot make India a global leader. The future of the chemical industry will increasingly be determined by its research capabilities and technological depth. Advanced materials, specialised chemicals and innovative manufacturing processes are becoming increasingly important in global markets. India must therefore move beyond its role as a major producer and strengthen its position as a developer of new technologies.
The Research, Development and Innovation Scheme, launched in November 2025 with a corpus of ₹1 lakh crore, offers an opportunity to advance this objective. The inclusion of Advanced Chemicals, Petrochemicals and Material Technologies as eligible areas under the scheme from October 2026 is particularly significant. It creates scope for greater private sector participation in research and supports the development of indigenous technologies for advanced industrial applications. The Chemical Promotion and Development Scheme also contributes through research support, industry studies, knowledge creation and innovation promotion.
Equally important is the development of skilled human resources. The Central Institute of Petrochemicals Engineering & Technology (CIPET) has emerged as an important institution in this regard. With 51 centres across the country, it has trained nearly 6.72 lakh professionals and completed 8.53 lakh technology support service assignments during the period from 2014 to 2024. Its work in technical education, plastic waste management, research and industrial support reflects the importance of building expertise alongside manufacturing capacity. The achievements of 18 Centres of Excellence, which have filed 85 patents, published more than 600 research papers and developed 105 technologies and products, further demonstrate the contribution of research institutions to domestic innovation.
However, industrial expansion must not come at the cost of environmental protection or public safety. Chemical manufacturing requires strict oversight because inadequate handling of hazardous substances can have serious consequences for workers, communities and the environment. Quality Control Orders provide an important regulatory mechanism in this regard. With 37 such orders in force as of August 2026, specified chemical and petrochemical products are required to meet standards prescribed by the Bureau of Indian Standards.
Workplace safety also deserves sustained attention. The nationwide training programme under the Viksit Bharat@2047 Action Plan aims to cover all 2,393 Major Accident Hazardous units over five years. As of August 2026, 21 training programmes had been conducted, involving 1,376 industrial units and training 2,441 personnel. Such initiatives are essential, but their effectiveness will depend on continuous training, regular safety audits and strict compliance at the operational level.
The broader challenge is to ensure that growth in the chemical industry is both competitive and sustainable. Environmental management, recycling, responsible resource utilisation and the adoption of cleaner technologies must become integral to industrial planning rather than being treated as additional compliance requirements. India’s future competitiveness will depend not simply on how much it produces, but also on how efficiently and responsibly it manufactures.
The 14th edition of India Chem 2026, held in Mumbai under the theme “Advantage Bharat: An Emerging Global Chemicals Hub”, offered an important platform for industry engagement and international collaboration. With more than 5,000 visitors, the event brought together businesses, industry leaders and other stakeholders to explore investment opportunities, emerging technologies and avenues for cooperation. Such platforms can help connect India’s domestic strengths with global market requirements.
India has the industrial base, market potential and policy framework to become a more influential player in the global chemicals and petrochemicals industry. But ambition must be matched by consistent execution. Dedicated industrial parks must become productive manufacturing hubs, research funding must translate into commercially viable technologies, and skill development must respond to the changing needs of industry. At the same time, environmental responsibility and workplace safety must remain central to the growth strategy.
The opportunity before India is much larger than increasing its share of global chemical production. It is about building an industry that can innovate, manufacture high value products, create quality employment and compete internationally without compromising safety or sustainability. If investment, infrastructure, research and responsible industrial practices advance together, the chemicals and petrochemicals sector can become one of the strongest pillars of India’s journey towards becoming a globally competitive manufacturing economy.
