Shillong: India’s chemical industry has the potential to grow into a $1 trillion sector by 2040 and generate nearly seven lakh skilled jobs by 2030, according to a report released by NITI Aayog on Thursday.
The report highlights the need for targeted reforms to boost the country’s share in the global chemical value chain, which currently stands at just 3.5 percent.
With a trade deficit of $31 billion in 2023, the sector remains heavily dependent on imported feedstock and specialty chemicals.
The report envisions India becoming a global chemical manufacturing powerhouse by 2030, aiming to capture 5 to 6 percent of the global value chain and eventually increasing this to 12 percent by 2040.
NITI Aayog CEO BVR Subrahmanyam said the chemical industry is larger than several traditional sectors and must be leveraged now, noting that chemicals play a vital role in everyday life and across industries.
The proposed roadmap focuses on doubling production, eliminating the trade deficit, and boosting exports by up to $40 billion.
It also outlines the creation of advanced chemical hubs through revitalising existing industrial clusters and developing new ones.
The plan includes central-level coordination, improved infrastructure, financial support mechanisms, and governance models tailored for efficient implementation.
Incentives for increasing domestic chemical production are being recommended, especially in areas with high import costs or critical market relevance.
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The report suggests using technology and innovation to promote self-sufficiency, including enhanced R&D efforts and deeper collaboration between academia and industry.
It also emphasises the need for strategic partnerships with multinational corporations and leveraging international trade agreements to access cutting-edge technologies.
The report presents a clear path forward for India’s chemical sector, positioning it as a cornerstone of the country’s economic ambitions with the potential to deliver significant gains in production, exports, innovation, and employment.
