The global Chemicals & Petrochemicals market is projected to grow from US $4.6 trillion in 2021 to US $6 trillion by 2028. According to the Government of India, India stands 6th globally in sales values, its present market size is around US $240 billion and it is expected to reach US $304 billion by 2025. The Indian chemical industry is expected to grow at 9.3%. In the Agrochemicals sector, India is the 4th largest producer and 2nd largest exporter globally. Similarly, in dyes-stuffs, India is the 2nd largest producer and exporter globally. This sector contributes 9.40% of manufacturing GVA and 1.69% of National GVA. The sector employs around 4 million people directly and indirectly

The people's aspirations are growing and the purchasing power has increased. The Indian chemical industry's growth potential is also driven by the increasing demand for chemicals in various sectors such as agriculture, healthcare, and construction. As a result, the demand in the chemical sector is increasing.

If India is growing at 9.3 per cent by 2047, the Indian chemical industry’s market size will be around US $2 trillion. If we consider a conservative growth of 6%, then also the Indian chemical industry will be about US $1 trillion which will be 2-3 percent of the total market size. The Indian chemical and petrochemical industry has to play a key role if India needs to achieve its ambitious US $40 trillion economy goal by 2047.

India's chemical industry is also export-oriented, with a significant portion of its output being exported to various countries worldwide, such as the United States, China, and Japan. However, it is worrisome that Indian Chemical Industry is the net importer due to the non-availability of feedstocks and mining agents. India’s net import of chemicals was almost nil in FY 2003-04. By FY 2013-14, the net import rose to US $8 billion and by 2022, it rose to US $22 billion. The export had increased by 2.1 times whereas the import increased by 2.26 times during the period.

Hence, there is an emergent need for increasing the domestic capacity or else, the net import will keep on increasing. This can be achieved by making India a global chemicals manufacturing hub. In order to achieve this, there is a need for policy support for boosting competitiveness, e ncou r a g i n g i nves tme n t, e n s u ri n g environmental sustainability, supporting SME enterprises, and fostering skill development. Also, the industry consists mainly of small and medium-sized enterprises, which require policy support to obtain access to credit, market information, and technology to operate more eciently and compete globally.

Investment in research and development is critical to the survival and growth of the chemical industry, and policy support can help to create an environment conducive to investment by offering tax benefits, low-interest loans, and other incentives.

Chemical industry is responsible for significant environmental pollution, and policy support can help to ensure that Indian chemical manufacturers operate in an environmentally sustainable manner, which can build trust among consumers and investors.