India’s Chemical Industry At Crossroads With Policy Push And Rising Demand

India’s chemical industry is entering a transformative phase, supported by favorable policies and heightened demand across domestic and international markets. According to industry reports, the sector is expected to see robust growth in FY26, particularly in speciality chemicals, agrochemicals, and polymers.  

Government initiatives such as the Production Linked Incentive (PLI) scheme, Make in India campaign, and safeguard duties are providing a strong foundation for expansion. Companies are investing in digitalisation, raw material efficiency, and new product development to enhance profitability and sustainability.  

India currently ranks sixth globally in chemical sales and is among the top exporters of agrochemicals and dyes. Analysts note that the industry is shifting from scale-based competition to technology-driven leadership, with sustainability and innovation becoming key differentiators.  

Key Highlights  

• Sector valued at over USD 220 billion, projected to reach USD 1 trillion by 2040  
• India ranks sixth globally in chemical sales and second in Asia for speciality chemicals  
• Government support through PLI scheme, Make in India, and safeguard duties  
• Strong demand trends in speciality chemicals, agrochemicals, and polymers  
• Companies focusing on digitalisation, raw material savings, and innovation  

Final Takeaway  
India’s chemical industry stands at a pivotal juncture, with policy support and demand creating fertile ground for growth. By embracing innovation and sustainability, the sector is set to strengthen its global footprint and emerge as a cornerstone of India’s manufacturing and export ecosystem.  

Sources: ANI, Indian Chemical Council, D&B India Report