World's Chemical Nucleus

Chemicals and Chemical products sector (industry division 20 of NIC 2008) accounted for 1.42% of the GVA for all economic activies in 2020-21 at constant prices (at 2011-12 prices)

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 production of Total Major Chemicals and Petrochemicals in 2022-23 (up to September 2022) is 26570 thousand MT.
  • CAGR in the production of Total Chemicals and Petrochemicals during the period 2017-18 to 2021-22 is 4.61%.
  • FDI in the Chemicals sector (excluding fertilizers) is $ 20.96 Bn (April’2000 to December 2022). 
  • India ranks 11th in the World Exports of Chemicals (excluding pharmaceutical products) and ranks 6th in the World Imports of Chemicals (excluding pharmaceutical products).
  • Indian chemical industry employs more than 2 Mn people.
  • The production of Major Chemicals in 2022-23 (up to September 2022) is 6487 thousand MT.
  • The combined exports of Major Chemicals and Major Petrochemicals in the year 2022-23 (up to September 2022) is $ 9 Bn, an increase of 2% from last year’s export value, Imports have increased to $ 13.33 Bn.

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

  • %

    Share of GVA in Chemical manufacturing sector

  • %

    Chemical products exports share

  • %

    CAGR in producon of Major Petrochemicals

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

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

  • Exports of Chemicals and Chemical products (excluding pharmaceucal products and ferlizers) contributed 11.7% of total export in the year 2021-22 compared to 12.9% in the year 2020-21. It contributed 10.8% of total export in the year 2022-23 (upto September, 2022). 
  • CAGR in Export of total Chemicals and Chemical products (excluding pharmaceucal & ferlizer products) during the period 2017-18 to 2021-22 was 13.86% while CAGR of total national export was 12.62%. 
  • The compounded average growth rate(CAGR) during the period 2017-18 to 2021-22 was 4.4% for manufactured product based on WPI while it was 4.4% for Chemicals and Chemical Products.
  • The Index of Industrial Production of Chemical & Chemical products achieved record to 137.2 in July, 2022 as against the lowest value of 109.1 recorded in May, 2021.
  • The quantum of production of Major Chemicals increased to 6.48 mn tonnes during 2022-23 (up to September 2022) as compared to 6.3 Mn tonnes during the corresponding period of the previous year.
  • The quantum of production of certain Petrochemicals such as Synthetic Rubber and Performance Plastics was 175 kilo tonnes and 973 kilo tonnes, respectively from the period April 2022 to September 2022.
  • Overall growth in production of Major Chemicals in 2022-23 (up to September 2022) over 2021-22 (up to September 2021) has been 3.27% with a major rise accounted in the majority of sub sectors
    • Pesticides and Insecticides: 10.51%
    • Alkali Chemicals: 6.93%
    • Inorganic Chemicals: 1.56%
  • Overall growth in production of Petrochemicals in 2022-23 (Up to September 2022) has declined by 7.64% but certain sub-sectors have recorded an increase in production
    • Performance Plastic: 25.13%
    • Synthetic rubber: 10.29%
    • Synthetic fibre: 1.47%
  • Production of Major Chemicals for the year 2022-23 (Up to September 2022) is 6488.6 Metric Kilo Tonne and production of Petrochemicals for the year 2022-23 (Up to September 2022) is 20235.9 Metric Kilo Tonne


  • 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

  • Production Linked Incentives scheme for manufacturing of Advance Cell Chemistry Battery under Atmanirbhar Bharat Abhiyaan


Production Linked Incentives (PLI) Scheme

The Union Cabinet on 12 May, 2021 approved a Production Linked Incentive (PLI) Scheme for setting up manufacturing facilities for Advance Chemistry Cell (ACC), Battery Storage in India, with a total manufacturing capacity of 50 Giga Watt Hour (GWh) for 5 years. The Scheme aims to enhance India’s Manufacturing Capabilities and Exports — for manufacture of Advance Chemistry Cell (ACC) in India and envisages incentivizing large domestic and international players in establishing a competitive ACC battery set-up in the country. Under the PLI Scheme for ACC, the production-linked subsidy is based on applicable subsidy per KWh and percentage of value addition achieved on actual sale for manufacturers who set up production units with a capacity of at least 5 GWh up to a maximum of 20GWh. Ministry of Heavy Industries, on 22nd October 2021 has released Request for Proposal (RFP) inviting bids from domestic and international players for setting up manufacturing facilities for Advance Chemistry Cell (ACC) Battery Storage in India under the ACC Production Linked Incentive (PLI) Scheme. In response to the EoI, total 10 domestic/international manufacturers submitted their proposal for ~130 GWh as per technical bids opened on 15.01.2022.

  • INR 18,100 Cr

    Scheme Outlay

Industrial Land Bank Portal

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

Major Investors

Latest In Chemicals

Press ReleaseDec 26, 2022

Year- end-Review 2022: Department of Fertilizers

Read Now

Press Release

Year- end-Review 2022: Department of…


Remission of Duties and Taxes on Exported…


Inside India's Production Linked Incentive…


Chemical and Petrochemical Statistics: At a…


Roadmap for Ethanol Blending in India: 2020…


Asked Questions

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

Was it helpful?

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.

Was it helpful?

What are OCPFs?

OCPFs comprise of two different categories of organic chemicals and these are Discrete Organic Chemicals (DOCs) and PSF chemicals.  
For more details, please visit the following link. 

Was it helpful?

What is a DOC?

Discrete organic chemical is defined as any chemical belonging to the class of chemical compounds consisting of all compounds of carbon except for its oxides, sulfides and metal carbonates, identifiable by chemical name, by structural formula, (if known) and by Chemical Abstracts Service (CAS) registry number (if assigned). For instance: Acetic Acid ,Ethanol.

For more details, please visit the following link.

Was it helpful?

What are the objectives of the scheme for setting up of plastic parks in India?

The major objectives of the scheme are:
1) Increase the competitiveness, polymer absorption capacity and value addition in the domestic downstream plastic processing industry through adaptation of modern, research and development led measurers.
2) Increase investments in the sector through additions in capacity and production, creating quality infrastructure and other facilitation to ensure value addition and increase in exports.
3) Achieve environmentally sustainable growth through innovative methods of waste management, recycling, etc.
4) Adopt a cluster development approach to achieve the above objectives owing to its benefits arising due to optimization of resources and economies of scale.

For more details, please visit the following link. 

Was it helpful?


New India Timeline @2047


Disclaimer: All views and opinions that may be expressed in the posts on this page as well as post emanating from this page are solely of the individual in his/her personal capacity