India’s Chemicals Sector Sets Target of Reaching $1 Trillion by 2040

Union Chemicals and Fertilizers Minister J P Nadda announced that India is targeting a $1 trillion valuation for its chemicals sector by 2040. Speaking at a CEO roundtable in New Delhi, the minister stated that the government is focused on building an ecosystem to boost investments and expand domestic manufacturing capabilities.

The Department of Chemicals and Petrochemicals, operating under the Ministry of Chemicals and Fertilizers, organized the roundtable in partnership with Invest India. The event brought together more than 100 delegates from the global chemical industry to discuss growth strategies and long-term targets.

Key representatives from major corporations attended the meeting, including BASF, Tronox, ExxonMobil, Fujifilm, Lubrizol, Dow Chemicals, UPL, Reliance, DCM Shriram, HMEL, SABIC, and Haldia Petrochemicals.

During the discussions, the minister assured industry leaders that the government is committed to establishing a continuous and institutionalised dialogue mechanism. The objective is to identify regulatory and operational impediments and translate suggestions into time-bound actions. He noted that achieving the $1 trillion target will require sustained investment, ongoing technology development, and stronger domestic manufacturing capabilities.

Industry representatives raised several critical issues concerning the long-term competitiveness of the sector. Participants called for large-scale investments to be facilitated through appropriate financing and investment-support mechanisms, particularly for capital-intensive upstream projects. They also pitched for trade remedial measures to secure a level-playing field against unfair trade practices.

Other suggestions from industry leaders included greater support for research and development, innovation, and technology development. To attract global talent, delegates recommended special tax breaks modelled after policies in countries like China, Japan, and the United Kingdom. They also proposed the creation of a sovereign fund for technology acquisition, following examples from South Korea and the United States.

Additionally, the industry recommended time-bound single-window clearances for chemical and petrochemical projects, alongside a comprehensive national feedstock policy to reduce vulnerability to geopolitical and global supply-chain disruptions. Minister Nadda assured attendees that these issues have been duly noted and will be taken up with the relevant ministries.

"The ambition to scale India's chemicals sector to $1 trillion by 2040 highlights the immense long-term potential of our industrial manufacturing ecosystem. For sustained growth, bridging the gap between policy intent and execution will be crucial. Collaborative frameworks addressing capital-intensive upstream projects, single-window clearances, and R&D support can significantly de-risk large-scale investments and attract global industry leaders to establish deeper roots in India." — Dr. Shishir Gupta, Founder & CEO, StartupLanes