In 2023, the chemical market in India was valued at $220 billion and is anticipated to surge to $383 billion by 2030, boasting an estimated Compound Annual Growth Rate (CAGR) of eight percent. Comparatively, the global growth rate for this sector is forecasted at one percent from 2021 to 2030.
India currently ranks as the sixth-largest contributor to the global chemical industry in terms of sales, having attracted significant Foreign Direct Investment (FDI) amounting to $21.7 billion between April 2000 and September 2023.
The chemical sector is fully open to foreign investors, ensuring automatic approval mechanisms to bolster investor confidence. Additionally, investments in Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs) are expected to reach $420 billion.
Initiatives such as the Central Institutes of Petrochemicals Engineering & Technology (CIPET) and the Institute of Pesticide Formulation Technology (IPFT) are poised to advance skill development within the sector.
Specialty chemicals are anticipated to experience a notable growth trajectory from 2020 to 2025, with an expected CAGR of twelve percent, driven by innovation and increasing demand. By 2024, the market is projected to expand by $29.7 billion, with a CAGR of 3.26 percent from 2024 to 2029.
Over the subsequent five years, a CAGR of 2.71 percent is anticipated, generating $143.3 billion in revenue. The number of businesses is predicted to rise to 15,730 by 2024.
As reported by ManufacturingToday, the sector’s growth is supported by new policies, improved infrastructure, and access to affordable labor resources. Notably, speciality chemicals, agricultural, and petrochemicals emerge as the most promising segments for future growth.
