The central government has announced a scheme to support states in establishing three dedicated chemical parks, through the challenge route, on a cluster-based plug-and-play model. The objective is to reduce India's chemical import dependency and gradually strengthen domestic manufacturing capabilities.

In the Union Budget 2026-27, Finance Minister Nirmala Sitharaman announced a major boost for the chemical sector by proposing a new scheme to support states in establishing three dedicated chemical parks.

The projects have been allotted Rs. 600 crore in the Budget Estimates for FY27. This marks the first time direct budgetary support has been provided for dedicated chemical park infrastructure.

The parks will be developed using a challenge-based route on a cluster-driven, plug-and-play model. This is intended to streamline industrial operations and fast-track project execution.

The objectives are:

* Enhance domestic chemical production and reduce import dependence.

* Strengthen India's manufacturing base to meet rising domestic demand.

* Support the goal of making India a global manufacturing hub as part of the "Viksit Bharat" vision.