World's chemical nucleus

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 Indian chemicals industry is projected to reach $ 304 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

  • 1.34 %

    Nation’s Gross Value Added

  • 12.3 %

    Chemical products exports share

  • 3.4 %

    Contribution to global chemical industry

  • 16 %

    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

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

Total production of major chemicals and petrochemicals stood at 27,847 MT during 2018-19, a growth of 4.15% over 2017-18. 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 61% of total production of basic major petrochemicals.

  • 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 22% of total chemicals and petrochemicals market in India. As of FY18, the total market size is around $35 bn. The demand for speciality chemicals is expected to grow at 12% CAGR from FY19-22.

Growth Drivers

  • Demographic dividend and disposable income

    Rising disposable income, median age of population, urbanisation and growing penetration and demand from rural markets
  • Production and Consumption shift to India

    There has been a shift of production and consumption story towards Asian and Southeast Asian countries in all sectors which is also driving demand for Chemicals and Petrochemicals
  • Shift in consumer preferences leading to new product development

    Shift in consumer preferences towards a healthier lifestyle and environment-friendly products
  • Scope for import substitution

    Opportunity to produce $111 Bn worth of chemical products by 2023
  • 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

    $763.51 mn

  • Promoters


  • District


  • Private Projects


  • Govt. Projects



$123.49 mn

Dahej Caustic Soda Plant Project

State (s) Gujarat

$96.39 mn

Dahej Chloromethanes Project

State (s) Gujarat

$70.56 mn

Flavors & Fragrances Project [Sri City]

State (s) Andhra Pradesh

$57.23 mn

Dahej Hydrazine Hydrate Project

State (s) Gujarat

Major Investors

Data on Map

  • Chemical Business in India

Latest in Chemicals


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.

  • 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.

  • What is a Petroleum, Chemicals and Petrochemical Investment Regions (PCPIR)?

    PCPIRs are Petroleum, Chemicals and Petrochemical Investment Regions is a specifically delineated investment region with an area of around 250 square kilometers planned for the establishment of manufacturing facilities for domestic and export led production in petroleum, chemicals & petrochemicals, along with the associated services and infrastructure. 
    The PCPIR policy can be accessed through the following link.
    The details of PCPIRs in certain states can be accessed through the following link.

  • 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.

  • 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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