India's chemicals sector targets up to $81 billion exports by 2030: NITI Aayog report
India's chemicals sector aims for USD 81 billion in exports by 2030. This expansion will reduce import dependence and boost domestic production significantly. The industry needs substantial growth in consumption and production over the next five years. Speciality chemicals, agrochemicals, and pigments will drive export growth opportunities. This ambitious plan could create up to one million new…
New Delhi: A NITI Aayog report outlines India's chemicals industry aiming for exports of up to USD 81 billion by 2030. This target encompasses USD 45 billion in specialty chemicals, USD 5-10 billion in inorganic chemicals, and USD 26 billion in petrochemicals. The overall export goal is part of a strategy to boost India's role in the global chemicals value chain and strengthen its standing as a major producer and exporter.
To achieve these targets, the industry needs to maintain a consumption Compound Annual Growth Rate (CAGR) of 10-11 percent over the next five years and a production CAGR of 14 percent. By fiscal 2030, India's chemicals market consumption is expected to reach USD 290-310 billion, representing 5-6 percent of global chemical consumption.
India must significantly increase domestic production capacity to meet rising demand and decrease import dependence, with production estimated to double to USD 220-280 billion by fiscal 2030 from USD 110 billion in fiscal 2023.
Key sectors driving growth in speciality chemical exports include dyes and pigments, paints and coatings, agrochemicals, and flavours and fragrances. Currently, India's speciality chemical exports are strong in the US (17 percent) and Brazil (16 percent) but have limited presence in major global import markets at around 8 percent.
While India's chemicals industry benefits from growing domestic demand, supportive policies, and strong manufacturing capabilities, challenges remain in terms of infrastructure gaps, regulatory issues, and the need for technological advancements. Recommendations include targeted investments, policy measures, and fostering an innovative ecosystem to help India advance in the chemicals value chain and meet its ambitious 2030 goals.
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