India’s Chemicals and Petrochemicals Sector: A Foundation for Industrial Growth

Key Highlights:

• India is the 6th largest producer of chemicals globally and 4th in Asia, with the sector valued at USD 220 billion, projected to reach USD 1 trillion by 2040.
• Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) in Dahej, Visakhapatnam–Kakinada, and Paradeep have attracted ₹3.4 lakh crore investment.
• The Bharat Audyogik Vikas Yojana Rasayan (BHAVYA Rasayan) Scheme, approved in July 2026, will establish three dedicated chemical parks with central grants up to ₹1,000 crore each.
• India Chem 2026 event in Mumbai highlighted India as an emerging global chemicals hub, attracting investment and promoting sustainable growth.
• The Central Institute of Petrochemicals Engineering & Technology (CIPET) has expanded to 51 centres, training nearly 6.72 lakh skilled professionals.
• Quality Control Orders (QCOs) are in force for 37 chemical and petrochemical standards to ensure product quality and curb substandard imports.

Detailed Insights:

• The sector is a pillar for manufacturing, agriculture, and industrial development, serving diverse sectors like pharmaceuticals, textiles, and automobiles.
• India holds prominent global positions, being the second-largest manufacturer/exporter of dyes and third-largest exporter of agrochemicals.
• India Chem 2026 aimed to attract investment and promote sustainable growth, with its theme highlighting India as an emerging global chemicals hub.
• India allows 100% Foreign Direct Investment (FDI) via the automatic route, leading to significant growth in FDI inflows in the sector.
• PCPIRs are integrated investment regions (approx. 250 sq. km) with common infrastructure, creating 3.7 lakh jobs and establishing over 2,200 units.
• BHAVYA Rasayan scheme provides plug-and-play infrastructure in dedicated chemical parks, fostering sustainable development with centralised waste management.
• Plastic Parks support the downstream plastic processing industry, promoting investment, production, and environmentally sustainable growth through waste management.
• The Chemical Promotion and Development Scheme (CPDS) facilitates knowledge creation, research, and farmer training on safe and judicious pesticide use.
• The Research, Development and Innovation (RDI) Scheme (₹1 lakh crore corpus) now includes Advanced Chemicals, Petrochemicals, and Material Technologies for funding.
• CIPET provides technical education, skill development, and technology support, with 51 centres including those for plastic waste management.
• Centres of Excellence have significantly contributed to indigenous capabilities by filing 85 patents and developing 105 new technologies and products.
• A nationwide training program for Major Accident Hazardous (MAH) Units under Viksit Bharat@2047 enhances workplace safety and hazardous chemical management.

Key Concepts Involved:

• Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs): Integrated investment regions (approx. 250 sq. km) with common infrastructure to promote the chemical and petrochemical sector.
• BHAVYA Rasayan: A scheme to establish dedicated chemical parks providing plug-and-play infrastructure and fostering sustainable industrial development.
• Quality Control Orders (QCOs): Regulatory orders making specified chemical and petrochemical standards mandatory to ensure product quality and curb substandard imports.
• Major Accident Hazardous (MAH) Units: Industrial units handling hazardous chemicals that pose a risk of major accidents, subject to specific safety regulations and training.