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<p data-start="96" data-end="430"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">India has the potential to transform its chemical sector into a $1 trillion industry by 2040, capturing up to 12% of the global value chain (GVC), according to a new report from NITI Aayog. The report outlines a strategic roadmap that includes targeted reforms to strengthen manufacturing, reduce import dependency, and boost exports.</span></p>
<p data-start="432" data-end="723"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Currently, India holds a 3.5% share in global chemical value chains, with a chemical trade deficit of $31 billion recorded in 2023. The vision for 2030 is to increase India&rsquo;s share in the global chemical value chain to 5&ndash;6% while eliminating the trade deficit by reaching a Net Zero balance.</span></p>
<p data-start="725" data-end="1062"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">BVR Subrahmanyam, CEO of NITI Aayog, emphasized the untapped potential of the sector, describing it as larger than many of India&rsquo;s traditional industries. &ldquo;We are already a major producer of chemicals. From organic to inorganic, chemicals touch nearly every part of our lives. This is a high-growth sector we must now leverage,&rdquo; he said.</span></p>
<p data-start="1064" data-end="1245"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">The proposed reforms aim to double India&rsquo;s current chemical production levels and add $35&ndash;40 billion in additional exports, which could generate around 700,000 skilled jobs by 2030.</span></p>
<h3 data-start="1247" data-end="1278"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Key Reform Recommendations:</span></h3>
<ul data-start="1279" data-end="2466">
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1279" data-end="1422"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Establish world-class chemical hubs: Upgrade existing industrial clusters and develop new ones with modern infrastructure and governance.</span></li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1423" data-end="1606"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Set up an empowered central committee: To oversee the sector&rsquo;s development, including a dedicated Chemical Fund to support shared infrastructure and viability gap funding (VGF).</span></li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1607" data-end="1738"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Local management bodies: Each chemical hub should have an administrative authority responsible for operations and compliance.</span></li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1739" data-end="1871"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Port and cluster development: Focus on enhancing port logistics and infrastructure across eight high-potential chemical zones.</span></li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="1872" data-end="2036"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Operational subsidy scheme: Launch Opex-based incentives for select chemical manufacturers, based on parameters like import substitution and export potential.</span></li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2037" data-end="2292"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Innovation and technology: Promote R&amp;D through collaboration between academia and industry, with funding routed via an interface agency involving the Department of Chemicals and Petrochemicals (DCPC) and the Department of Science &amp; Technology (DST).</span></li>
<li style="font-family: georgia, palatino, serif; font-size: 12pt;" data-start="2293" data-end="2466"><span style="font-family: georgia, palatino, serif; font-size: 12pt;">Global partnerships: Foster collaborations with multinational corporations and access foreign technology, while supporting growth through free trade agreements (FTAs).</span></li>
</ul>
<p data-start="2468" data-end="2673" data-is-last-node="" data-is-only-node=""><span style="font-family: georgia, palatino, serif; font-size: 12pt;">With timely policy interventions and industry coordination, India&rsquo;s chemical sector could become a global manufacturing hub, playing a key role in economic growth, job creation, and export competitiveness.</span></p>
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India Eyes $1 Trillion Chemical Sector by 2040

NITI Aayog outlines roadmap to boost exports, create 7 lakh jobs and cut trade deficit by 2030

India Eyes $1 Trillion Chemical Sector by 2040

NITI Aayog outlines roadmap to boost exports, create 7 lakh jobs and cut trade deficit by 2030

July 4, 2025 | 15:05 IST