India's chemicals and petrochemicals sector is projected to attract Rs 4 lakh crore of investment by 2030, according to a report by the Chemicals and Petrochemicals Manufacturers Association of India, as the country accelerates its push to capture a larger share of the $5 trillion global chemicals market. India currently accounts for about 4% of global chemical production but is targeting 8-10% by 2035 through a combination of scale-up and specialty product development.
The government's PLI scheme for specialty chemicals, announced in Budget 2026 with an outlay of Rs 8,000 crore, is expected to attract significant investment in pharmaceutical APIs, agrochemical intermediates, electronic chemicals and advanced materials. Several Chinese-dependent supply chains for chemical intermediates are being actively relocated to India, driven by geopolitical diversification imperatives of global multinational companies.
Listed Indian specialty chemical companies including SRF, PI Industries, Navin Fluorine, Aarti Industries and Clean Science have collectively announced capex plans of Rs 18,000 crore for FY27-FY29. The industry is also investing in green chemistry and bio-based chemicals to meet the sustainability requirements of global customers. The development of dedicated chemical parks with world-class infrastructure at Dahej, Vapi and Kakinada is expected to significantly improve the ease of doing business for new entrants and expanding companies.
