India Sixth-Largest Chemicals Producer, Worth $220 Billion

The Press Information Bureau released a backgrounder on 7 November 2026 setting out where India's chemicals and petrochemicals industry stands and what the government is building for it. The sector feeds pharmaceuticals, textiles, construction, automobiles, electronics and consumer goods, and the paper treats it as one of the load-bearing walls of Indian manufacturing.

Size and standing

India ranks sixth in the world and fourth in Asia among chemical producers. The industry is valued at roughly USD 220 billion, and the government projects USD 300 billion by 2030 and USD 1 trillion by 2040. In narrower segments India is the second-largest maker and exporter of dyes and the third-largest exporter of agrochemicals. About 13,000 large units and 4.45 lakh micro, small and medium enterprises work in the sector. Output of major chemicals and petrochemicals climbed from 45,638 thousand metric tonnes in 2015-16 to 58,617 thousand metric tonnes in 2024-25. Foreign investment is allowed up to 100 per cent by the automatic route in most chemical segments, and inflows of Rs 1,04,895 crore between 2014 and 2026 were more than double the Rs 45,240 crore of the previous decade.

Where the industry is being built

The three operational Petroleum, Chemicals and Petrochemicals Investment Regions, in Gujarat, Andhra Pradesh and Odisha, have together drawn Rs 3.4 lakh crore of investment, created 3.7 lakh jobs and hosted more than 2,200 manufacturing units. The Bharat Audyogik Vikas Yojana Rasayan scheme, approved in July 2026, will set up three parks of at least eight square kilometres each, with central grants of up to Rs 1,000 crore per park once the state puts in Rs 500 crore. Of its Rs 3,030 crore outlay, Rs 3,000 crore goes to shared infrastructure and utilities; the scheme runs for five years to 2030-31. Among the ten Plastic Parks sanctioned, four have finished their infrastructure fully, three of them during 2025-26.

Research, skills and safety

Advanced Chemicals, Petrochemicals and Material Technologies became an eligible area under the Rs 1 lakh crore Research, Development and Innovation Scheme with effect from 8 October 2026. CIPET now runs 51 centres and has trained close to 6.72 lakh professionals, while 18 Centres of Excellence have filed 85 patents and developed 105 new technologies and products. Thirty-seven Quality Control Orders are in force, and a training drive under the Viksit Bharat@2047 Action Plan is to cover all 2,393 Major Accident Hazardous units in five years. The 14th India Chem 2026, held in Mumbai from 22 to 24 October 2026 on the theme 'Advantage Bharat: An Emerging Global Chemicals Hub', drew over 5,000 visitors.