World's chemical nucleus

Chemicals industry in India is highly diversified, covering more than 80,000 commercial products. It is broadly classified into Basic chemicals, Specialty chemicals, and Agrochemicals. 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 Indian chemicals industry is projected to reach $ 304 bn by 2025
  • Indian chemicals industry excluding pharmaceutical products) ranks 14th in exports 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 mn 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

  • 16 %

    Dyestuff and dye intermediates share (global)

  • 1.2 %

    Nation’s Gross Value Added

  • 10.3 %

    Chemical products exports share

  • 3.4 %

    Contribution to global chemical industry


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

Market size of the Chemicals industry in India stood at $ 163 bn in 2017-18.

Total production of chemicals and petrochemicals stood at 47,882,000 MT during 2017-18, a 2.62% increase over 2016-17. Alkali chemicals had the largest share in the Chemical industry in India with approximately 69% share in the total production. Production of polymers account for around 59% of total production of basic major petrochemicals.

  • The petrochemical market in India is expected to grow at a CAGR of 10% over the next 5 years to reach $ 100 bn by 2022
  • The market for crop protection chemicals in India is expected to reach $ 7.5 bn by 2019. This growth in demand is based on a rapidly growing population and a decrease in per capita availability of arable land, both of which result in a greater need to increase agricultural yield
  • The specialty chemicals market has witnessed a growth of 14% in the last five years; the market size is expected to reach $ 70 bn by 2020

Growth Drivers

  • Robust demand

    Large population base coupled with strong export demand
  • Policy support

    Setting up PCPIRs, plastic parks and CIPETs
  • Chemicals manufacturing hub

    The global shift towards Asia as the world’s chemicals manufacturing hub
  • New focus segments

    Specialty and Knowledge chemicals
  • Cost competitive manufacturing

    Skilled manpower, world-class engineering, and strong R&D
  • Open

    (Amendments) Plastic Waste Management Ru…

    Amendments to the Plastic Waste Management Rules, 2016

  • Open

    Guidelines for Chemicals Promotion and D…

    The objectives of CPDS is to facilitate growth and developme…

  • Open

    National Rubber Policy 2019

    To promote overall sustainability of the Rubber Industry wit…

  • Open

    New Urea Policy 2015

    The Policy seeks to: (i) increase indigenous urea production…

  • Open

    Policy Resolution for Promotion of Petro…

    To promote investment in the sector and make the country an…

  • Open

    Scheme for setting up of plastic parks

    The objectives of this scheme are to increase the competitiv…

Investible Projects

Investment Opportunities in Chemicals

  • Projects


  • Opportunity

    $533.89 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$72.54 mn

Flavors & Fragrances Project [Sri City]

State (s) Andhra Pradesh

$50.78 mn

Grain Based Distillery Project [Ganora]

State (s) Rajasthan

$29.02 mn

Kraft Papers Project [Sundargadh]

State (s) Gujarat

$29.02 mn

Medium Density Fibre Boards Project [Morbi]

State (s) Gujarat

Major Investors

Data on Map

  • Chemical Business in India

Latest in Chemicals


Asked Questions

  • What are the restrictions on export of chemicals as per SCOMET list?

    a. Export of Category 1A chemical is prohibited.
    b. Export of chemicals listed in Category 1B is permitted only to States party to the Chemical Weapons Convention after obtaining an authorization from DGFT. The list of State Parties to the Chemicals Weapons Convention (CWC) and countries which are not State Parties is available on the OPCW website link.
    c. Export of Chemicals in Category 1C is allowed to State Parties to the CWC without an export licence subject to the condition that the exporter shall notify within 30 days of export to the National Authority, Chemicals Weapons Convention, Cabinet Secretariat; the Ministry of External Affairs (D&ISA); the Department of Chemicals & Petro-chemicals, and the DGFT of such exports in the prescribed format (Aayat Niryat Form ) along with the End Use Certificate and submit to the DGFT a copy of the bill of entry into the destination State Party within 30 days of delivery. Export of chemicals in Category 1C to states not party to the Chemical Weapons Convention shall continue to be restricted and shall continue to be restricted and will be allowed only against an export licence and a Government signed EndUse-Certificate, and in that case also exporters shall submit to the DGFT a copy of the bill of entry into the destination country within 30 days of delivery.
    d. The sub-category 1D of SCOMET titled ‘Other Chemicals’ contains 25 AG controlled chemical precursors.
    1. Export of chemicals in this category is allowed to countries specified in Table 1 (given in category 1D) without an export licence subject to the condition that the exporter shall notify within 30 days to specified departments
    2. Export of chemicals in this category to other countries shall be restricted and will be allowed only against an export licence, and in that case the exporter shall submit to the DGFT a copy of the bill of entry into the destination country within 30 days of
    3. Countries in Table 1 include Argentina, Australia, Austria, Belgium, Bulgaria, Canada, Croatia, Republic of Cyprus, Czech Republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Ireland, Italy, Japan, Republic of Korea, Latvia, Lithuania, Luxembourg, Malta, Mexico, Netherlands, New Zealand, Norway, Poland, Portugal, Romania, Slovak Republic, Slovenia, Spain, Sweden, Switzerland, Turkey, Ukraine, United Kingdom, United States.
    e. Notification no. 56(RE-2013)/2009-14 dated 12.12.2013 has been rescinded since the three chemicals covered in the notification are now included in Category 1D. 
    For more information, please click here.
  • What are the documents to be submitted for the application on SCOMET Authorization?

    The following documents need to be uploaded online while making the application:
    i) End Use-cum-End User Certificate(s) (EUC) from all the firms/entities involved in the supply chain of the product(s) (to be furnished on their letter head duly signed by the authorised signatory).
    ii) Copy(ies) of Purchase Order(s) of firm(s) involved in the supply chain of the item/product.
    iii) Aayat Niryat Form (ANF)-1 (Profile of Exporter).
    iv) Elaborate technical specification relating to item of export.
    v) Copy(ies) of supply contract/agreement {if documents are bulky only the relevant portion containing contract reference and parties to the contract and the portion indicating the item(s) to be supplied and quantity thereof not exceeding 10 pages shall be uploaded).
    vi) Copy of DGFT authorization letter for the same product, if any in case of application for repeat orders.

    Hard copy (Paper copy) of the following documents are required to be submitted to DGFT (HQ):
    i) Original End Use-cum-End User Certificate (EUC).
    ii) Copies of Bills of Entry into the destination country for items exported during the last one year. 
    For more details, please visit the following link.

  • Who gives license for Category 0 items in the SCOMET list?

    Licensing authority for items in Category 0 in Appendix 3 to Schedule 2 of ITC (HS) is Department of Atomic Energy. Applicable guidelines are notified by the Department of Atomic Energy under Atomic Energy Act, 1962. For certain items in Category 0, formal assurances from the recipient State will include non-use in any nuclear explosive device. Authorizations for export of certain items in Category 0 will not be granted unless transfer is additionally under adequate physical protection and is covered by appropriate International Atomic Energy Agency (IAEA) safeguards, or any other mutually agreed controls on transferred items. Export of items specified under the Note 2 of the ‘Commodity Identification Note’ of the SCOMET list would also be permitted against an authorization granted by the Department of Atomic Energy. 
    For more details, please visit the following link. 

  • Where can we find the list of SCOMET items?

    Appendix 3 of Schedule 2 of ITC (HS) Classification contains the control list of India which is also referred to as the SCOMET list. You can go to the DGFT website to see the complete list. In the list as appearing in Appendix 3 of Schedule 2 of ITC (HS) Classification, SCOMET items are listed under eight (9) categories as follows:
    a) Category 0: Nuclear material, nuclear-related other materials, equipment and technology.
    b) Category 1: Toxic chemical agents and other chemicals.
    c) Category 2: Micro-organisms, toxins.
    d) Category 3: Material, Materials Processing Equipment, and related technologies.
    e) Category 4: Nuclear-related other equipment, assemblies and components; test and production equipment; and related technology, not controlled under Category 0.
    f) Category 5: Aerospace systems, equipment including production and test equipment, related technology and specially designed components and accessories thereof.
    g) Category 6: Munitions List.
    h) Category 7: Electronics, computers, and information technology including information security.
    i) Category 8: Special Materials and Related Equipment, Material Processing, Electronics, Computers, Telecommunications, Information Security, Sensors and Lasers, Navigation and Avionics, Marine, Aerospace and Propulsion.
    Each category contains exhaustive listing of items covered under that category. Special conditions applicable to items under different categories are mentioned under each category. 
    For more details, please visit the following link.

  • Is export of SCOMET items regulated?

    Yes, export of items in the SCOMET list is regulated as per India’s Foreign Trade Policy. Export is either prohibited or is permitted under an authorization. 
    For more details, please visit the link. 

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