Chemical Exports: The Next Big Leap for India's Economy

NITI Aayog has unveiled a strategic roadmap aimed at nearly doubling India’s annual chemical exports from USD 44 billion (₹3.66 lakh crore) to USD 79–84 billion (₹7.3 lakh crore) by 2030, identifying limited domestic demand as a key constraint and advocating for export-driven reforms.

The proposal recommends a set of targeted measures, including the development of chemical production clusters, enhancement of port infrastructure, and the introduction of a sales-linked incentive scheme to localize production of critical chemicals and boost exports. The plan also includes an opex-based subsidy to support sectors such as agrochemical and pharma intermediates, battery chemicals, dyes, and petrochemicals.

India's chemical trade deficit stood at USD 31 billion (₹2.58 lakh crore) in 2023, with a modest 3.5% share in the global value chain (GVC), significantly behind China’s 23%. The domestic chemical market, valued at USD 220 billion (₹18.3 lakh crore) in 2023, is projected to grow to USD 1 trillion (₹83 lakh crore) by 2040.

Nivedita Shukla Verma, Secretary of Chemicals and Petrochemicals, stressed the need to focus on exports to achieve the ₹83 lakh crore target, while NITI Aayog Vice Chairperson Suman Bery highlighted the chemical sector’s underperformance relative to India’s successful pharmaceutical industry, despite shared strengths in chemistry.

The strategy also calls for revitalizing underperforming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) in Dahej, Paradeep, and Vizag, positioning India as a stronger player in the global chemicals market.

News by Rahul Yelligetti.