India's Chemicals Sector Targets Greater Global Participation

Key Highlights:

• India's chemicals industry could target $76–81 billion in exports by 2030, as the country seeks to strengthen its position in global chemical supply chains.
• Speciality chemicals could account for approximately $45 billion of exports by 2030, making it a key area for export expansion.
• Petrochemical exports could contribute around $26 billion to the overall 2030 export target.
• India's chemicals consumption is projected to reach $290–310 billion by FY2030, equivalent to around 5–6% of global chemical consumption.
• Domestic chemical production may need to increase to $220–280 billion by FY2030, compared with approximately $110 billion in FY2023.
• The sector could potentially generate around 7–10 lakh additional jobs by the end of the decade.

Key Observations:

• Domestic demand + exports: India's growing chemical consumption provides a domestic growth base while increasing exports could expand the sector's global footprint.
• Focus on higher-value chemicals: Areas such as dyes & pigments, paints & coatings, agrochemicals, and flavours & fragrances have been identified as potential drivers of speciality chemical exports.
• Import substitution: Expanding domestic production is expected to help reduce reliance on imported chemicals while strengthening local manufacturing capabilities.
• Global supply-chain opportunity: India's relatively low share of major global chemical import markets indicates potential for greater participation in international chemical trade.

Source: The Economic Times, 15 August 2026; NITI Aayog report.

*Portfolio allocation as on 30th June 2026. Allocations are subject to change based on portfolio positioning, investment decisions, and market conditions.

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