The Basic Chemicals, Cosmetics, and Dyes Export Promotion Council (CHEMEXCIL), an initiative of the Ministry of Commerce, is setting its sights on achieving a robust US$ 31 billion in chemical exports during the fiscal year 2024-25. The ambitious target is fueled by strong global demand, especially for "Made in India" chemicals in key international markets, including Brazil, the United States, Japan, and Saudi Arabia.

Strong Growth in Chemical Exports

In the first half of the fiscal year, India’s chemical exports have already seen a 4.57% increase, totaling US$ 14.1 billion. Mr. Raghuveer Kini, the Director General of CHEMEXCIL, expressed optimism for a substantial increase in exports in the latter half of the year. This positive forecast comes after a challenging period last year, marked by a decline in exports due to drought conditions in Brazil, which impacted demand in one of India’s significant chemical export markets.

Focus on Quality and International Standards

Mr. Kini highlighted the growing global recognition of Indian chemicals, emphasizing their quality and adherence to international standards. This reputation is increasingly driving demand in South America, where India’s chemical exports are valued at approximately US$ 1 billion annually. The Brazilian market, in particular, is one of the top destinations for Indian chemicals, and the positive export trend is expected to continue, despite earlier setbacks.

Addressing Future Challenges: EU Carbon Tax and Export Infrastructure

As part of its preparation for the upcoming challenges in global trade, CHEMEXCIL is organizing awareness programs to help exporters prepare for the European Union’s carbon tax, set to be implemented on January 1, 2026. The tax will affect seven carbon-intensive sectors, including chemicals, and is expected to have a significant impact on exporters. Mr. Kini emphasized the importance of understanding compliance requirements to avoid disruptions in trade.

Alongside regulatory changes, CHEMEXCIL is also focused on addressing operational challenges that are impeding smoother trade. Infrastructure issues at major ports and ongoing payment-related difficulties due to the rupee-ruble trade mechanism have been identified as significant obstacles. To mitigate these challenges, Mr. Kini recommended the improvement of road networks and the expansion of authorized banks to facilitate easier transactions, especially between India and Russia.

Looking Ahead

Despite the challenges, CHEMEXCIL remains committed to driving India’s growth in the global chemical market. With the US$ 31 billion export target for FY 2024-25, the focus is on building upon existing successes and expanding India's chemical export reach. Addressing the looming carbon tax and improving export infrastructure will be key to sustaining this momentum.

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