The Indian chemical industry is poised for substantial growth, with exports expected to surpass ₹2.63 lakh crore (US$ 30 billion) in FY25, according to Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL). The government’s latest budget proposals, including import duty reductions on key raw materials and support for MSMEs, are set to enhance domestic manufacturing and improve export competitiveness.

As of December 2024, India’s chemical exports have already reached ₹1.86 lakh crore (US$ 21.2 billion), demonstrating strong sectoral momentum. The focus on emerging markets, Green Chemicals, and bio-based specialty chemicals is expected to further accelerate this upward trend.

Import Duty Reductions to Benefit Key Raw Materials

To strengthen the chemical sector’s global standing, the government has introduced import duty reductions on critical raw materials, including:

• Phosphoric acid – A key ingredient in fertilizers and industrial chemicals.
• Boric acid – Used in the glass, ceramics, and pharmaceutical industries.
• Sorbitol – A widely used raw material in food, cosmetics, and pharmaceuticals.

These measures will lower production costs, making Indian chemical products more competitive in the international market.

CHEMEXCIL’s Focus on Emerging Markets and Sustainable Growth

CHEMEXCIL Chairman, Mr. Abhay Udeshi, emphasized that the council is actively engaging with new markets to boost exports. The growing demand for Green Chemicals and bio-based specialty chemicals aligns with sustainable manufacturing goals, ensuring long-term industry growth.

The government’s trade-friendly policies, coupled with increased adoption of advanced technologies and value-added manufacturing, will drive India’s chemical sector expansion and solidify its position as a global chemical supplier.

Recognizing Export Excellence: CHEMEXCIL Awards 2025

To honor outstanding contributors in the chemical export sector, CHEMEXCIL will host an award ceremony on February 8, 2025, in Mumbai, Maharashtra.

The event will be attended by:

• Ms. Anupriya Patel, Union Minister of State for Health & Family Welfare and Chemicals & Fertilizers.
• Mr. Uday Samant, Maharashtra’s Minister of Industries.

During the event, Ms. Anupriya Patel will emphasize the need for advanced technologies and sustainable practices in the sector.

India’s Chemical Industry: A $1 Trillion Vision by 2040

The Indian chemical industry is one of the fastest-growing sectors globally, currently valued at ₹19.27 lakh crore (US$ 220 billion) as of 2022. Industry forecasts indicate:

• ₹26.28 lakh crore (US$ 300 billion) by 2025
• ₹87.61 lakh crore (US$ 1 trillion) by 2040

The sector employs over two million people and produces more than 80,000 commercial products, ranging from petrochemicals to specialty and fine chemicals.

Future Outlook: Strengthening India’s Position as a Global Chemical Hub

With budgetary incentives, duty reductions, and export-driven policies, India’s chemical sector is set for robust expansion. By promoting innovation, sustainability, and cost efficiency, the government aims to boost India’s footprint in global chemical trade.

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