The government may introduce policy support and financial incentives to encourage chemical exporters to diversify their overseas markets and reduce dependence on the US, according to people familiar with the development. The proposed measures would help exporters identify new markets, access international buyers and strengthen India’s position in global chemical value chains. The initiative also aims to build a more resilient export ecosystem by reducing India’s dependence on a limited number of destinations.
Government Eyes Wider Markets for Chemical Exports
The US currently accounts for approximately 18% of India’s chemical exports, highlighting the need to broaden the country’s export base. Consequently, policymakers are considering greater opportunities across Europe, Southeast Asia, West Asia, Africa and Latin America. Expanding exports across these regions could reduce geographical concentration risks while creating new growth opportunities for Indian chemical manufacturers. Moreover, a product-region export strategy could allow India to match specific chemical categories with markets where demand and competitive opportunities are strongest.
Product-Region Strategy Could Drive Export Growth
Under the proposed approach, Indian chemical companies could target different product segments according to regional demand. For example, agrochemicals, water-treatment chemicals and construction chemicals could find opportunities in African markets. Meanwhile, Latin America could offer potential for agrochemicals, specialty chemicals, dyes and pigments. Similarly, ASEAN markets could provide opportunities for surfactants, polymers and industrial intermediates. At the same time, Europe could offer growing demand for specialty, green and pharmaceutical chemicals. Such targeted market expansion could help Indian manufacturers reduce dependence on individual markets while strengthening their global presence.
India Targets $81 Billion in Chemical Exports by 2030
India’s chemical export strategy also aligns with broader national growth targets. NITI Aayog has set an objective of increasing India’s annual chemical exports to approximately $81 billion by 2030. The target includes around $45 billion from specialty chemicals, $26 billion from petrochemicals and $5–10 billion from inorganic chemicals. The broader strategy aims to move India towards a net-zero importer position by FY2030 while expanding the overall chemical industry towards $1 trillion by 2040.
Shift Towards Higher-Value Specialty Chemicals
Market diversification could also accelerate the chemical industry’s transition from relatively lower-value bulk products to higher-value, application-specific chemicals. This shift could enable Indian manufacturers to enter more profitable market segments, improve export realisation and strengthen their competitiveness in global value chains. Dr. Ram Singh, Professor and Head at IIFT, New Delhi, said India needs a targeted product-region export strategy to reduce its dependence on the US. He also emphasised the importance of moving from bulk chemicals towards higher-value, application-specific products to access more profitable segments.
China Remains a Major Import Concentration Risk
While India seeks to diversify its chemical exports, the country also faces significant concentration risks on the import side. China accounted for 41.8% of India’s organic chemical imports, valued at approximately $560 million, out of total imports worth $1.34 billion in April 2026. This represented a substantial increase from 29.4% a year earlier. Therefore, alongside expanding export destinations, India may need to strengthen domestic manufacturing capabilities and diversify critical import sources. As reported by thehindubusinessline.com, such measures could help reduce supply-chain vulnerabilities and support a more resilient and globally competitive Indian chemical industry.
