|
India's chemicals industry is set for significant growth, and to support this, the policy think-tank of the government of India 'NITI Aayog' suggests seven key policy interventions to increase country's share in the global chemicals value chain.
NITI Aayog report 'Powering India's participation in Global Value Chains' of July 2025, noted that, as of 2023, India accounts for about 3 to 3.5 per cent of the global chemicals consumption. The vision is to raise this share to 5-6 per cent by 2030 and further to 10-12 per cent by 2040. The report of NITI Aayog stated "A thorough evaluation was conducted to determine the necessary policy support that can enable these prioritized chemicals to facilitate the growth of India's chemicals industry". It also added that India's presence in the global chemicals market is steadily rising, and with strong growth drivers in place, the sector offers vast opportunities for expansion. However, the report also underlined a key challenge, it stated that India is still a net importer of chemicals, with a trade deficit of around USD 31 billion. This heavy dependence on imports highlights a gap in domestic manufacturing capacity. To become a stronger global player and reduce its reliance on imports, the country must focus on strengthening its local production capabilities. The report stated that by addressing these gaps, India can move towards becoming a net-zero importer by 2030, while also positioning itself as a significant contributor to the global market. To achieve this, Niti Aayog has outlined seven strategic areas of policy support. It includes development of infrastructure, such as upgrading port facilities specifically for the chemicals industry. The second involves financial interventions like introducing production-linked incentives (Opex subsidies) to support chemical manufacturers. The third is promoting research and development by setting up a dedicated R&D fund for targeted innovations. Fourthly, the Aayog stresses the need for talent and skill upgradation through workforce training tailored to the industry's needs. Fifth, the report suggested strengthening international cooperation by revising free trade agreements in a way that benefits the chemicals sector. Sixth, improving ease of doing business, this includes simplifying environmental clearance procedures while maintaining transparency and accountability. Lastly, institutional interventions are required to streamline regulatory processes across various government departments and agencies. As per NITI Aayog, these seven steps, if implemented effectively, could significantly transform India's chemicals sector and enhance its role in the global value chain. (ANI)
|
