Snapshot
World's chemical nucleus
Market size of Chemicals & Petrochemicals sector in India is worth ~$165 Bn
Chemicals industry in India is highly diversified, covering more than 80,000 commercial products. It is broadly classified into Bulk chemicals, Specialty chemicals, Agrochemicals, Petrochemicals, Polymers and Fertilizers. India’s proximity to the Middle East, the world’s source of petrochemicals feedstock, makes for economies of scale.
India is a strong global dye supplier, accounting for approximately 16% of the world production of dyestuff and dye intermediates. Chemicals industry in India has been de-licensed except for few hazardous chemicals. Upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and Plastic parks will provide state-of-the-art infrastructure for Chemicals and Petrochemicals sector.
- The Chemicals & Petrochemicals market is projected to reach $300 bn by 2025
- Indian ranks 14th in export and 8th in import of chemicals (Excluding Pharmaceuticals products) globally
- Demand of chemical products is expected to grow at approximately 9% p.a. over the next 5 years
- Indian chemical industry employs more than 2 million people
100% FDI is allowed under the automatic route in the chemicals sector (except in the case of certain hazardous chemicals)
For further details, please refer to FDI Policy
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Nation’s Gross Value Added
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Chemical products exports share
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Contribution to global chemical industry
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Dyestuff and dye intermediates share (global)

Third largest consumer of polymers in the world

Fourth largest producer of agrochemicals in the world

Sixth largest producer of chemicals in the world

- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
Industry Scenario
The market size of Chemicals & Petrochemicals sector in India is around $165 bn during 2019-20; expected to grow to $300 bn by 2025.
The production of Total Major Chemicals and Petrochemicals in 2019-20 (upto September 2019) was 13,871 thousand MT. CAGR in production of Total Chemicals and Petrochemicals during the period 2014-15 to 2018-19 is 4.78%. Alkali Chemicals accounts for around 71% of the total production of Major Chemicals for the year 2019-20 (upto September 2019).
- The petrochemical demand is expected to grow at 7.5% CAGR from FY 2019-23, with polymer demand growing at 8%
- The agrochemicals market in India is expected to grow at 8% CAGR reaching $3.7 bn by FY22 and $4.7 bn by FY25.
- The specialty chemicals constitute 18% of total chemicals and petrochemicals market in India. As of FY19, the total market size is around $32 bn. The demand for speciality chemicals is expected to grow at 12% CAGR from FY19-22.
GROWTH DRIVERS
Rising disposable income, median age of population, urbanisation and growing penetration and demand from rural markets
Shift in production and consumption towards Asian and Southeast Asian countries in all sectors leading to increasing demand for Chemicals and Petrochemicals
Shift in consumer preferences towards a healthier lifestyle and environment-friendly products
Opportunity to produce $111 Bn worth of chemical products by 2023 for domestic requirements
Production Linked Incentives scheme for manufacturing of Advance Cell Chemistry Battery under Atmanirbhar Bharat Abhiyaan


Production Linked Incentives (PLI) Scheme
The Union Cabinet chaired by the Prime Minister, Shri Narendra Modi has given its approval to introduce the Production-Linked Incentive (PLI) Scheme in Advance Chemistry Cell Battery for Enhancing India’s Manufacturing Capabilities and Enhancing Exports – Atmanirbhar Bharat.
INR 18,100 Cr
Scheme Outlay

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GIS - based map displaying available infrastructure for setting up manufacturing operations in the state.
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Invest India closely works with
Government Ministry/ Department
Industry Associations
- Alkali Manufacturers Association of India
- Chemicals & Petrochemicals Manufacturers Association
- Crop life India Dye Manufacturers Association of India
- Indian Chemical Council
- Indian Speciality Chemical Manufacturers Association
- Organization of Plastic Processors of India
- The All India Plastic Manufacturers' Association