India is aiming to expand its chemicals and petrochemicals industry into a USD 1 trillion market by 2040, with the Union government prioritising dedicated industrial parks, policy reforms and improved infrastructure to attract investment. The target was highlighted by Union minister J.P. Nadda at the opening of India Chem 2026 in Mumbai.
Addressing the 14th edition of the industry event, Nadda emphasised the sector’s growing importance in India’s manufacturing ambitions. The industry supplies essential materials to several sectors, including agriculture, pharmaceuticals, construction and consumer goods.
Government support to encourage investment
Nadda said the proposed Bhavya Rasayan scheme would provide Rs 1,000 crore for each chemical park, while the participating state government would contribute at least ₹500 crore. These clusters are intended to offer shared infrastructure and encourage large-scale, long-term investments.
The minister also highlighted the importance of reliable connectivity through ports, airports, railways and road networks. Efficient logistics and access to raw materials will be essential for expanding production and strengthening export capabilities.
Held at the Bombay Exhibition Centre in Mumbai, the conference carried the theme “Advantage Bharat: An Emerging Global Chemicals Hub”, reflecting India’s ambition to become a competitive international destination for chemical manufacturing.
States look to attract projects and employment
Maharashtra Chief Minister Devendra Fadnavis said the chemicals and petrochemicals industry could contribute significantly to the state’s ambition of achieving a USD 1 trillion economy. He noted that the sector currently provides employment to around three lakh people in Maharashtra.
Union Minister of State Anupriya Patel reiterated the Centre’s commitment to industry expansion through supportive policies, simpler regulations and infrastructure development.
The participation of Madhya Pradesh Chief Minister Mohan Yadav and Odisha Chief Minister Mohan Charan Majhi also highlighted growing competition among states to attract industrial projects, investment and employment opportunities.
Wider economic significance
Achieving the USD 1 trillion target will require more than new factories. Stronger domestic supply chains, skilled workers, environmental safeguards and faster regulatory approvals will also be necessary.
A larger chemicals industry could benefit pharmaceuticals, textiles, fertilisers, packaging, automotive manufacturing and electronics by improving the availability of essential industrial inputs.
India Chem 2026 concluded its three-day programme on Saturday, October 24, with the government’s focus remaining on converting investment commitments into industrial capacity, employment and export growth.
Source: Economic Times
