India’s chemicals and petrochemicals sector, currently valued at about $220 billion, is projected to reach $300 billion by 2030 and $1 trillion by 2040, according to a government background note published on 7 November.
The sector is the world’s sixth-largest chemicals producer and Asia’s fourth-largest. It includes roughly 13,000 large units and 4.45 lakh micro, small and medium enterprises, supplying industries ranging from pharmaceuticals and textiles to construction, automobiles and electronics.
Production and investment are rising
Output of major chemicals and petrochemicals increased from 45.64 million tonnes in 2015–16 to 58.62 million tonnes in 2024–25. Foreign direct investment inflows reached ₹1,04,895 crore during 2014–2026, with 100% FDI permitted through the automatic route in most chemical segments.
India’s three operational petroleum, chemicals and petrochemicals investment regions—Dahej, Visakhapatnam–Kakinada and Paradeep—have attracted ₹3.4 lakh crore in investment, supported 3.7 lakh jobs and enabled more than 2,200 manufacturing units.
The next infrastructure layer
The ₹3,030 crore BHAVYA Rasayan scheme is designed to establish three dedicated chemical parks with common utilities and environmental infrastructure. Each park must cover at least 2,000 acres, with central grants of up to ₹1,000 crore per park and minimum state contributions of ₹500 crore.
Execution will determine whether shared treatment, logistics and utility systems translate into lower costs, safer operations and higher-value domestic production.
Source: Department of Chemicals and Petrochemicals via PIB, 7 November 2026.
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