NITI Aayog’s new report sets a clear goal — to grow India’s chemical industry to a USD 1 trillion output and capture 10–12% of global chemical value chains by 2040. That’s a massive leap from the current 3–3.5% share. Let’s understand how it benefits the industry.
The policy roadmap includes seven priority interventions: developing chemical clusters, improving port and logistics infrastructure, launching targeted incentive schemes, boosting R&D investment, building skilled talent, streamlining regulations, and supporting export-oriented production.
Gujarat and Odisha are set to play a major role, with Dahej, Paradip, and PCPIR zones leading large-scale chemical cluster development. Other strategic regions include Cuddalore in Tamil Nadu and Barmer in Rajasthan.
India is still a net importer of many feedstocks and specialty chemicals. The roadmap signals major demand for domestic suppliers across segments, from agrochemicals to pigments and electronic-grade resins.
With only 0.7% of revenue invested in R&D and a 30% skills gap in emerging areas like green chemistry, the report prioritizes funding for industry-academia collaboration and workforce development in technology-heavy segments.
Chemical buyers can expect better access to certified domestic products, more reliable pricing, and growing partnerships with export-ready Indian suppliers. Sourcing from compliant hubs will soon become the norm.