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India's chemicals industry could target exports of up to USD 81 billion by 2030 as the country seeks to expand domestic production, reduce import dependence and become a net-zero importer, according to a NITI Aayog report.
The report said the chemicals industry could target USD 45 billion in speciality chemical exports, USD 5-10 billion in inorganic chemical exports and USD 26 billion in petrochemical exports by 2030. The combined export target of USD 76-81 billion is part of a broader strategy to increase India's participation in the global chemicals value chain and strengthen its position as a major chemicals producer and exporter. To meet the targets, the industry would need to achieve 10-11 per cent consumption Compound Annual Growth Rate (CAGR) over the next five fiscal years and 14 per cent production CAGR, the report said. India's chemicals market consumption is projected to reach USD 290-310 billion by fiscal 2030, accounting for around 5-6 per cent of global chemical consumption, according to the report. The report said India needs to significantly expand domestic production capabilities to cater to rising demand and reduce reliance on imports. It estimated that India's chemical production would need to double to USD 220-280 billion by fiscal 2030, from around USD 110 billion in fiscal 2023. The industry could also generate 700,000 to one million new jobs by the end of the decade, it said. The report identified dyes and pigments, paints and coatings, agrochemicals, and flavours and fragrances as key areas that could drive growth in speciality chemical exports. India's speciality chemical exports have already gained traction across major markets, with the US accounting for 17 per cent and Brazil 16 per cent of exports in 2024. However, India's presence in major global import markets was only around 8 per cent, indicating scope for further export expansion, it said. The report noted that India's chemicals industry benefits from growing domestic demand, supportive government policies and strong manufacturing capabilities, but faces challenges including infrastructure gaps, regulatory hurdles and the need for technological advancement. It recommended targeted investments, policy interventions and an innovation-driven ecosystem to help India move up the chemicals value chain and achieve its 2030 ambitions. (ANI)
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