Transforming India's Chemical Industry: A Global Ambition by 2040

NITI Aayog's latest report unveils a strategic vision for transforming India's chemical industry into a global powerhouse by 2040. Titled "Chemical Industry: Powering India's Participation in Global Value Chains", it provides a detailed analysis of the current state and future potential of the sector.

The report highlights the ongoing transformation in the global chemical industry, spurred by changing supply chains and a growing demand for specialty and green chemicals. It points out significant challenges for India, including its 3.5% share in global chemical value chains and a chemical trade deficit of USD 31 billion in 2023.

To address these issues, NITI Aayog suggests comprehensive fiscal and non-fiscal reforms that could propel the sector to a USD 1 trillion valuation and a 12% share of global value chains by 2040. Key hurdles include over-reliance on imported feedstock, infrastructure gaps, and low R&D investment, compounded by a 30% shortfall in skilled professionals.

(With inputs from agencies.)