India's Chemicals and Petrochemicals Sector Overview
India's chemicals and petrochemicals industry serves as a critical pillar for manufacturing, agriculture, and industrial development, supplying diverse sectors including pharmaceuticals, textiles, construction, automobiles, electronics, and consumer goods. The sector is currently valued at approximately USD 220 billion, ranking as the sixth-largest producer globally and fourth-largest in Asia. Projections indicate growth to USD 300 billion by 2030 and USD 1 trillion by 2040. India holds prominent positions in specialized segments, being the second-largest manufacturer and exporter of dyes globally and the third-largest exporter of agrochemicals. The industry comprises approximately 13,000 large-scale units and 4.45 lakh micro, small, and medium enterprises (MSMEs).
Manufacturing Capacity and Investment Infrastructure
Production of major chemicals and petrochemicals has increased significantly from 45,638 thousand metric tonnes in 2015–16 to 58,617 thousand metric tonnes in 2024–25. The sector permits 100% FDI through the automatic route for most chemical sectors, with FDI inflows reaching ₹1,04,895 crore during 2014–2026, more than double the ₹45,240 crore recorded during 2004–2014. The government has established three operational Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) in Dahej (Gujarat), Visakhapatnam–Kakinada (Andhra Pradesh), and Paradeep (Odisha), each covering approximately 250 sq. km with about 40% area earmarked for processing activities. These PCPIRs have collectively attracted ₹3.4 lakh crore in investment, generated 3.7 lakh jobs, and facilitated the establishment of over 2,200 chemical manufacturing units.
Chemical Parks and Industrial Development Schemes
The Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme, approved in July 2026, aims to establish three dedicated chemical parks covering at least 8 square kilometers (2,000 acres) each. The Centre will provide grants of up to ₹1,000 crore per park, subject to a minimum contribution of ₹500 crore by the concerned State Government. The scheme has a total financial outlay of ₹3,030 crore, with ₹3,000 crore allocated for common infrastructure and basic utilities and ₹30 crore for administrative expenditure, running from FY 2026–27 to FY 2030–31. Additionally, the Scheme for Setting up of Plastic Parks supports downstream plastic processing with grant funding up to 50% of project cost (capped at ₹40 crore per project). Ten Plastic Parks have been approved across India, with four achieving 100% infrastructure completion including three completed during 2025–26.
Research, Innovation and Skill Development
The Research, Development and Innovation (RDI) Scheme launched in November 2025 has a corpus of ₹1 lakh crore to catalyze private-sector investment in research and innovation. Effective 8 October 2026, Advanced Chemicals, Petrochemicals and Material Technologies became eligible for funding under this scheme. The Chemical Promotion and Development Scheme (CPDS) facilitates sector growth through knowledge creation and research promotion, with HIL (India) Limited and the Institute of Pesticide Formulation Technology (IPFT) conducting farmer training programs that have benefited over 1 lakh farmers through more than 250 programs as of August 2026. The Central Institute of Petrochemicals Engineering & Technology (CIPET) has expanded to 51 centers, including 19 established since 2014, and has trained nearly 6.72 lakh skilled professionals (over 5.21 lakh during 2014–24) while completing 8.53 lakh Technology Support Service assignments. Eighteen Centers of Excellence have filed 85 patents, published over 600 research papers, and developed 105 new technologies and products.
Quality, Safety and Regulatory Measures
As of August 2026, 37 Quality Control Orders (QCOs) are in force, making specified chemical and petrochemical standards mandatory for domestic manufacturers and importers to comply with Bureau of Indian Standards parameters. A nationwide training program under the Viksit Bharat@2047 Action Plan focuses on "Safe Handling of Hazardous Chemicals at the Workplace and Reducing Risk Associated with Hazardous Chemicals" for Major Accident Hazardous (MAH) Units. The program aims to cover all 2,393 MAH units over 5 years, with each training covering 100 participants from 50 units. As of August 2026, 21 training programs have been conducted, attended by 1,376 industrial units training 2,441 personnel.
Industry Engagement and Global Outreach
The 14th India Chem 2026 was organized from 22 to 24 October 2026 in Mumbai with the theme "Advantage Bharat: An Emerging Global Chemicals Hub," attracting over 5,000 visitors through country forums, CEO Forum, sector-specific roundtables, and the inaugural India Chem Youth Innovation Challenge.