World's chemical nucleus

Market size of Chemicals & Petrochemicals sector in India is worth ~$178 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 and Petrochemicals market is projected to reach $300 bn by 2025
  • Indian ranks 9th in export and 6th in import of chemicals (Excluding Pharmaceuticals products) globally
  • Export of chemicals and chemical products grew at a CAGR of 7.2% between FY16 and FY20
  • Demand of chemical products is expected to grow at approximately 9% p.a. during 2020-25
  • 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

Chemicals Information Kit

Industry Scenario

The market size of Chemicals & Petrochemicals sector in India is around $178 bn; expected to grow to $300 bn by 2025.

The production of Total Major Chemicals and Petrochemicals in 2020-21 (upto September 2020) was 12,502 thousand MT. CAGR in production of Total Chemicals and Petrochemicals during the period 2015-16 to 2019-20 is 5.74%. 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.


  • 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

Industrial Land Bank Portal

GIS - based map displaying available infrastructure for setting up business operations in the state.


Asked Questions

What is Cluster Development Scheme (CDS)?

Department of Pharmaceuticals (DoP) has announced the Scheme for Cluster Development Programme for Pharma Sector in July 2014 to enhance quality, productivity and innovative capabilities of the SME pharma sector in the country.

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What is Pharmaceutical Promotion Development Scheme (PPDS)?

Pharmaceutical Promotion Development Scheme (PPDS) is meant for promotion, development and export promotion in Pharmaceutical sector. Under PPDS the Department of Pharmaceuticals on its own or through financial support by way of Grant-in-aid to the institutions, organizations, voluntary organizations or NGOs as mentioned in Rule 206 of GFR 2005:
1) Conduct Training/knowledge improvement programs/activities on issues/subjects relevant to growth of pharmaceutical industry.
2) Organize Summits, Convention, Exhibitions, Pharmacy week, meetings etc. in India and abroad and produce promotional materials like films, displays etc.
3) Conduct research studies, sector reports etc.
4) Purchase books, quality standards, pharmacopoeias, magazines, directories, software for developing information data banks, developing e-learning modules etc.
5) Give awards to achievers in pharmaceutical industry.
6) For any other activity not covered under above categories which may be decided by the Department of Pharmaceuticals from time to time.

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What is PCPIR?

Government of India has approved 4 Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) in the state of Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej), Odisha (Paradeep) and Tamil Nadu (Cuddalore and Naghapattinam) to promote investment and industrial development in these sectors.

The PCPIR is envisioned to reap the benefits of co-siting, networking and greater effiencies through use of common infrastructure and support services. Each PCPIR is a specifically delineated region having an area of about 250 sq. km. wherein 40% of the area has to be for processing activities.

For more information, click here

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What is Chemical Promotion Development scheme (CPDS)?

Chemical Promotion Development scheme is a government scheme with an objective of promoting and developing the chemical & petrochemical sectors by extending financial support for conduct of seminars, conferences, exhibitions, conducting studies/ consultancies, for facilitating growth, as well as analyzing critical issues affecting chemical and petrochemical sector.

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What is CWC?

Chemical Weapons Convention is universal non-discriminatory, multilateral, disarmament treaty that bans the development, production, acquisition, transfer, use and stockpile of all chemical weapons. The treaty puts all the States Parties on an equal footing. Countries having stockpiles of chemical weapons are required to declare and destroy them in a specified time frame and those who produce and use chemicals that can be easily converted into chemical weapons have to be open and transparent about the use of such weapons.
For more details, please visit the following link.

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