Transforming India's Chemicals Industry: NITI Aayog's Roadmap for Global Leadership

India is gearing up for significant growth in its chemicals industry, with the government's policy think-tank, NITI Aayog, recommending a blueprint of seven strategic interventions. The aim is to elevate India's presence in the global chemicals market, aiming to increase its share from the current 3-3.5% to 5-6% by 2030 and 10-12% by 2040, according to a July 2025 report titled 'Powering India's Participation in Global Value Chains'.

The report highlights that India's footprint in the global market is gradually expanding, presenting ample opportunities for growth. Despite the sector's potential, a prominent issue persists: India remains a net importer of chemicals, showing a trade deficit of approximately USD 31 billion. This underscores the necessity for bolstered domestic production capacities to reduce import reliance and solidify India's global position.

NITI Aayog outlines seven pivotal areas for policy support to address these challenges and opportunities. These include advancing infrastructure tailored for the chemicals industry, fostering financial incentives such as production-linked subsidies, prioritizing research and development investments, upgrading workforce skills, revising trade agreements to benefit the sector, enhancing ease of doing business, and streamlining regulatory mechanisms.

(With inputs from agencies.)