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
- India ranks 11th in the World Exports of Chemicals (excluding pharmaceutical products) and ranks 6th in the World Imports of Chemicals (excluding pharmaceutical products)
- The combined exports of Major Chemicals and Major Petrochemicals in the year 2021-22 (up to February 2022) has increased to INR 129.24 thousand crores from INR 90.9 thousand crores. Imports have increased to INR 152.65 thousand crores from INR 92.03 thousand crores over the corresponding period of last year
- Demand for chemical products is expected to grow at approximately 9% p.a. during 2020-25
- Indian chemical industry employs more than 2 mn people
- Fertilizers production (weight: 2.63 %) increased by 6.2 % in July 2022 over July 2021. Its cumulative index increased by 11.3 % during April to July 2022-23 over the corresponding period of previous year.
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
Nation’s Gross Value Added
Chemical products exports share
Contribution to global chemical sales
Third largest consumer of polymers in the world
Fourth largest producer of agrochemicals in the world
Sixth largest sale of chemicals in the world
- Industry Scenario
- FOREIGN INVESTMENT
- INDUSTRY TRENDS
- POLICIES & SCHEMES
The market size of Chemicals & Petrochemicals sector in India is around $178 bn; expected to grow to $300 bn by 2025.
- The quantum of production of Major Chemicals increased to 21.52 lakh tonnes during 2022-23 (Up to May 2022) as compared to 19.97 lakh tonnes during the corresponding period of the previous year, recording an increase of 7.75%.
- Overall growth in production of Major Chemicals in 2021-22 (up to February 2022) over 2020-21 (up to February 2021) has been 14.09% with major rise accounted in all sub sectors –
- Alkali chemicals – 16.8%
- Inorganic chemicals – 7.5%
- Organic chemicals – 3.75%
- Pesticides & Insecticides – 19.51%
- Dyes & Pigments – 25.6%
- Overall growth in production of Major Petrochemicals in 2021-22 (up to February 2022) over 2020-21 (up to February 2021) has been 14.09% with major rise accounted in all sub sectors –
- Synthetic Fibres – 31.7%
- Fibre Intermediates – 9.87%
- Polymers – 3.89%
- Synthetic Rubber – 9.42%
- Synthetic Detergent Intermediates – 7.23%
- Performance Plastics – 11.8%
- Olefins – 4.94%
- Aromatics – 0.76%
- Other Petrochemicals – 7.54%
- The petrochemical demand is expected to grow at 7.5% CAGR from FY 2019-23, with polymer demand growing at 8%.
- Exports of Organic & Inorganic Chemicals values at $ 2,332.92 mn in September 2022 and shares 7.15% of the total exports of the month.
- The Average Index of Industrial Production of Manufacturing of chemicals and chemical products in the FY 2021-22 is 120.7 and has grown by 4.1%.
- The agrochemicals market in India is expected to grow at 8% CAGR reaching $4.7 bn by FY25.
- The specialty chemicals constitute 22% of the total chemicals and petrochemicals market in India. The demand for specialty chemicals is expected to rise at a 12% CAGR in 2019-22.
- The production of total Major Chemicals & Petrochemicals during April - May 2022 is 8,658 thousand MT.
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
Industrial Land Bank Portal
GIS - based map displaying available infrastructure for setting up business operations in the state.
Frequently VIEW ALL
Invest India closely works with
Government Ministry/ Department
- 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