India's chemical and petrochemical industry is positioned as the sixth-largest producer globally and fourth-largest in Asia, according to the Department of Chemicals and Petrochemicals under the Ministry of Chemicals and Fertilisers. The sector currently maintains a valuation of approximately ₹18,400 crore ($220 billion) and is projected to reach ₹2,50,000 crore ($300 billion) by 2030 and ₹10,00,000 crore ($1 trillion) by 2040. The industry supplies essential inputs to multiple key sectors including pharmaceuticals, textiles, construction, automobiles, electronics and consumer goods, establishing it as an important contributor to India's industrial ecosystem.
India has established strong positions in specialized chemical manufacturing, with the country being the second-largest manufacturer and exporter of dyes globally and the third-largest exporter of agrochemicals worldwide. The sector comprises approximately 13,000 large-scale units and 445,000 micro, small, and medium-sized enterprises (MSMEs), demonstrating the industry's extensive manufacturing footprint across the country. As reported by the Ministry, these enterprises collectively contribute significantly to manufacturing, agriculture and industrial development across various sectors.
To strengthen domestic manufacturing capabilities and attract investments, the government is implementing comprehensive initiatives focused on developing dedicated chemical parks, improving industrial infrastructure, expanding financing opportunities and promoting research and technological advancement. The Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme, approved in July 2026, aims to establish three dedicated chemical parks with each park covering at least 8 square kilometres (2,000 acres) of land. 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, with a total financial outlay of ₹3,030 crore. India currently has three operational PCPIRs - Dahej in Gujarat, Visakhapatnam–Kakinada in Andhra Pradesh, and Paradeep in Odisha - which have attracted ₹3.4 lakh crore in investment and generated 3.7 lakh jobs while facilitating the establishment of over 2,200 chemical manufacturing units.
The Ministry has implemented Quality Control Orders (QCOs) to protect consumers, promote quality manufacturing and curb substandard imports, with 37 QCOs currently in effect until August 2026. Additionally, the establishment of 18 Centres of Excellence has resulted in 85 patents filed, over 600 research papers published, and development of 105 new technologies and products. A nationwide training programme has been launched under the Viksit Bharat@2047 Action Plan for the workforce of Major Accident Hazardous (MAH) Units, focusing on "Safe Handling of Hazardous Chemicals at the Workplace and Reducing Risk Associated with Hazardous Chemicals" covering all 2,393 MAH units over 5 years. As of August 2026, 21 training programmes have been conducted nationwide, attended by 1,376 industrial units and training 2,441 personnel.
