The chemical and petrochemical industry plays a pivotal role in the Indian economy, serving as a critical backbone for multiple sectors. Recognizing this, the Department of Chemicals and Petrochemicals (DCPC) has made significant strides this year to reduce import dependency, improve infrastructure, and foster a business-friendly environment. A strong emphasis on chemical sustainability continues to drive these efforts.
Strengthening Industry Through Flagship Schemes
Under the New Scheme of Petrochemicals, the Department is implementing three key sub-schemes:
*Plastic Parks: Building clusters for growth: The department promotes need-based plastic parks equipped with modern infrastructure and common facilities. These parks aim to strengthen the downstream plastic processing sector, attract investments, boost exports, and generate employment. So far, ten plastic parks have been approved across various states and are at different stages of implementation.
*Centres of Excellence (CoEs): Driving innovation: The CoEs provide grant-in-aid to educational and research institutions for upgrading technology and developing new applications for polymers and plastics. These centers focus on modernizing manufacturing processes and enhancing product quality. To date, 13 CoEs have been established under this scheme.
*Petrochemicals Research and Innovation Commendation (PRIC) Scheme: The PRIC scheme recognizes breakthrough innovations in petrochemical products and processes. It aims to improve R&D output, promote energy efficiency, manage plastic waste, and develop next-gen materials.
Boosting Trade Intelligence and Quality Standards
To enhance trade transparency, the department has identified high-value chemical imports under Chapters 29 and 38 and proposed dedicated Harmonized System (HS) codes for them. The department has introduced 28 new HS Codes—including 14 for technical-grade pesticides and formulations—to enable better tracking of import trends.
Quality Control Orders (QCOs): Raising Product Standards
DCPC is working to make BIS Standards mandatory for select chemicals under Section 16 of the BIS Act, 2016. These QCOs are intended to:
*Ensure safety for humans, animals, and the environment
*Prevent unfair trade practices
*Strengthen national security
As of now, 61 QCOs have been notified, with 30 implemented. In 2023 alone, 12 QCOs came into effect.
Global Collaboration and Industry Outreach
In partnership with Confederation of Indian Industry (CII), the Department organized the B20 International Conference on “Chemicals and Petrochemicals: Sustainable Transitions through Green Technologies and Digitalization” on May 24, 2023, in New Delhi. The event brought together 520 delegates, including global industry leaders from G20 nations.
Global Manufacturing Summit
DCPC also hosted a two-day summit on ‘Global Chemicals and Petrochemicals Manufacturing Hub in India’ on July 27–28, 2023, in New Delhi. The summit attracted 517 industry delegates, including 56 international participants, to discuss India’s rising role in global manufacturing.
Regulatory Enhancements for Transparency
The Department of Revenue, through Circular No. 15/2023-Customs, mandated the inclusion of IUPAC names and CAS numbers in import/export declarations for chemicals and petrochemicals. This requirement came into effect on October 1, 2023, ensuring better traceability and regulatory compliance.
Foreign Direct Investment: A Strong Growth Driver
India permits 100% FDI under the automatic route for the chemical sector, with minimal exceptions for certain hazardous substances. As reported by pib.gov.in, chemicals now rank sixth in total FDI inflows, contributing nearly 3% of total FDI equity into India. The sector recorded an impressive 91% growth in FY 2022–23 over the previous year—the highest among all sectors.
