Chemicals is in sixth position in terms of total FDI in India amounts to around 3% of total FDI equity inflows in India, with highest recorded growth i.e. 91% over the FY 2021-22 among all the sectors

The Indian chemical sector has received Foreign Direct Investment of Rs. 14,662 crore in FY 2022-23 in comparison to Rs. 7,202 crore in FY 2021-22 and Rs. 6,300 crore in FY 2020-21.

100% FDI is allowed under the automatic route for the chemicals sector and investor does not require any special clearances except for a few hazardous chemicals. Chemicals is in sixth position in terms of total FDI in India amounts to around 3% of total FDI equity inflows in India, with highest recorded growth i.e. 91% over the FY 2021-22 among all the sectors.

FDI Received by Indian Chemical Sector

FY 2020-21 - Rs. 6,300 Cr

FY 2021-22 - Rs. 7,202 Cr

FY 2022-23 - Rs. 14,662 Cr

(Source: DPIIT)

The Chemical and Petrochemical Industry holds a pivotal position in our economy serving as a backbone for numerous sectors. The Department of Chemical and Petrochemical (DCPC) has commendably taken steps to reduce our reliance on imports, enhance infrastructure, and improve the business environment, a strong focus on chemical sustainability into this narrative of growth.

In 2023, the Department of Chemical and Petrochemical has given special emphasis to reduce reliance on imports, enhance infrastructure, and improve the business environment.