Union Chemicals and Fertilizers Minister J P Nadda called for India’s chemicals sector to grow to $1 trillion by 2040. Speaking at the recently held CEOs roundtable, he said the government is working to create an enabling ecosystem that can attract investment and strengthen domestic manufacturing capabilities. The department of chemicals and petrochemicals, under the ministry of chemicals and fertilizers, organised the roundtable in partnership with Invest India. The meeting focused on strategies to accelerate the growth and global competitiveness of India’s chemical industry.
Government Focuses on Investment and Manufacturing
Nadda emphasised that achieving the $1 trillion chemicals sector target will require sustained investment, technology development and stronger domestic manufacturing capabilities. Moreover, the government plans to establish a continuous and institutionalised dialogue with industry stakeholders. This approach will help identify key challenges and convert industry recommendations into time-bound actions. The minister also reiterated the government’s focus on creating an ecosystem that supports investment, innovation, sustainability and long-term industrial growth. He assured industry representatives that the government would take up relevant concerns with the concerned ministries.
Industry Seeks Stronger Financing and Trade Support
More than 100 delegates from the global chemical industry participated in the roundtable. Representatives from companies including BASF, Tronox, ExxonMobil, Fujifilm, Lubrizol, Dow Chemicals, UPL, Reliance, DCM Shriram, HMEL, SABIC and Haldia Petrochemicals attended the meeting. During the discussions, industry leaders outlined several measures needed to strengthen the competitiveness and long-term growth of India’s chemical sector. In particular, the industry called for appropriate financing and investment-support mechanisms to facilitate large-scale, capital-intensive upstream chemical projects. It also sought stronger trade-remedial measures to create a level playing field and protect domestic manufacturers from unfair trade practices. Industry representatives urged the government to increase support for research and development, innovation and technology advancement.
Industry Proposes Tax Incentives and Sovereign Fund
To attract global talent, industry leaders proposed special tax incentives for overseas professionals, similar to measures adopted by countries such as China, Japan and the UK. The industry also recommended establishing a sovereign fund for technology acquisition, drawing on models followed by South Korea and the US. Such a fund could help Indian companies access advanced technologies and accelerate domestic capabilities.
Faster Approvals and National Feedstock Policy
The industry further called for time-bound, single-window clearances for chemical and petrochemical projects to reduce approval timelines and facilitate faster investments. Additionally, it proposed a comprehensive national feedstock policy to strengthen the availability of critical raw materials. Such a policy could help reduce the sector’s exposure to geopolitical uncertainties and global supply-chain disruptions. As reported by thehindubusinessline.com, these measures could support India’s ambition to build a globally competitive $1 trillion chemicals industry by 2040, while strengthening domestic manufacturing, innovation and investment.
