India's Chemicals Market: A Thriving Sector
India’s chemical sector poised for exponential growth, driven by strategic investments and global demand.
Investment Opportunities in India's Chemical Sector
100%
Foreign Direct Investment
Under the automatic route, excluding hazardous chemicals
$107.38B
Government Support
Expected total investments in the sector
$23.13M
Government Support
Allocated in Budget 2024-25
India’s chemical sector presents substantial investment opportunities, backed by comprehensive government support and favorable FDI policies. These initiatives are designed to accelerate sector growth and attract global investors.
Key Global Investments in India's Chemicals Industry
Reliance Industries
$9.06 billion investment in oil-to-chemicals.
BASF (Germany)
Expanding manufacturing footprint in India.
UPL Ltd
$431.96 million in specialty chemicals.
Government Support for the Chemicals Industry
PLI Scheme
Financial incentives for manufacturing bulk drugs and chemicals.
PCPIR Establishment
Boosting chemical manufacturing across multiple states.
Infrastructure Focus
Industrial parks, biotech parks, and chemical clusters.
India's Chemical Sector: Key Market Figures
Long Term Vision
$1T market potential
Near – term Target
$300B milestone
Current Market Size
$220B valuation
Growth Drivers in India's Chemicals Industry
Three key factors are driving India’s chemical sector growth in a continuous cycle of innovation and expansion:
Specialty Chemicals
Rapid growth at 12.4% CAGR, targeting $64B by 2025
Petrochemicals & Polymers
Massive expansion toward $1T market by 2040
Green Chemistry
Leading sustainable manufacturing initiatives
These interconnected drivers create a self-reinforcing ecosystem that strengthens India’s position in the global chemicals market.
