India’s chemicals and petrochemicals sector has expanded significantly over the past 12 years, supported by policy reforms, infrastructure development, investment promotion and capacity-building initiatives led by the Department of Chemicals & Petrochemicals. These measures have strengthened domestic manufacturing, encouraged innovation and created a stronger foundation for the government’s Viksit Bharat 2047 and Atmanirbhar Bharat objectives.
PCPIRs Attract Rs. 3.4 Lakh Crore in Investments
India’s three operational Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) at Dahej in Gujarat, Visakhapatnam-Kakinada in Andhra Pradesh and Paradeep in Odisha have emerged as important manufacturing and investment hubs. Together, these PCPIRs have attracted investments worth Rs. 3.4 lakh crore (US$ 40.54 billion), generated employment for nearly 3.7 lakh people and facilitated the establishment of more than 2,200 chemical manufacturing units. The development of these industrial clusters has consequently strengthened India’s chemical manufacturing ecosystem while creating opportunities for further investments across the value chain.
Chemical Sector FDI Nearly Doubles
Foreign direct investment (FDI) has also increased substantially, reflecting growing investor interest in India’s chemicals and petrochemicals industry. Between 2014 and 2026, the sector attracted FDI inflows of Rs. 1,04,895 crore (US$ 12.51 billion). This compares with Rs. 45,240 crore (US$ 8.78 billion) received during the 2004-2014 period. The increase highlights India’s growing attractiveness as a destination for chemical manufacturing investments and supports the country’s efforts to strengthen domestic production capabilities.
Quality Standards Strengthen Domestic Manufacturing
Alongside investment promotion, the government has introduced measures to improve product quality and protect domestic manufacturers from sub-standard imports. So far, the government has implemented 37 Quality Control Orders (QCOs) covering various chemical products. These measures aim to ensure that products entering the Indian market meet specified quality and safety standards. In addition, the government has approved 10 Plastic Parks, of which four have completed their infrastructure. These parks are expected to support integrated plastic manufacturing, improve infrastructure availability and enhance the competitiveness of India’s plastics industry.
CIPET Expands Research and Skill Development
The government has also strengthened the sector through investments in research, technology, innovation and skill development. The Central Institute of Petrochemicals Engineering & Technology (CIPET) has expanded its network to 51 centres, including 19 centres established since 2014. The institute has trained nearly 6.72 lakh professionals and completed approximately 8.53 lakh technology support service assignments. This expanding technical and skill-development network is helping the industry access a larger pool of trained professionals and technology-support capabilities.
IPFT Advances Biopesticide Technologies
The Institute of Pesticide Formulation Technology (IPFT) has also contributed to strengthening India’s agrochemical and biotechnology capabilities. IPFT has transferred 64 pesticide formulation technologies to industry. Furthermore, the Department of Biotechnology has provided Rs. 28.69 crore (US$ 3.01 million) to establish a Biofoundry Facility focused on biopesticides and advanced biological formulations. The facility is expected to support research and technology development in biological crop-protection products while encouraging greater adoption of innovative and sustainable agricultural solutions.
BHAVYA Rasayan Scheme to Support Chemical Manufacturing
The government has further strengthened its industrial policy through the BHAVYA Rasayan Scheme, recently approved by the Union Cabinet with an outlay of Rs. 3,030 crore (US$ 317.58 million). The scheme will support the establishment of three plug-and-play Chemical Parks. By providing ready-to-use industrial infrastructure, the initiative aims to accelerate project development and reduce the time and cost involved in setting up new manufacturing facilities. Moreover, the Chemical Parks are expected to reduce import dependence, attract investments and improve the global competitiveness of Indian chemical manufacturers.
India Strengthens Its Position as a Global Chemical Manufacturing Hub
Taken together, these initiatives are reshaping India’s chemicals and petrochemicals landscape. Investments in industrial infrastructure, FDI promotion, quality standards, research, skill development and technology are creating a stronger ecosystem for long-term industry growth. As a result, India is better positioned to attract new investments, increase manufacturing capacity, boost exports and generate employment. As reported by ibef.org, continued policy support and infrastructure development could further strengthen India’s position as a competitive global hub for chemicals and petrochemicals manufacturing, while advancing the broader goals of Atmanirbhar Bharat and Viksit Bharat 2047.
