By: ICN Bureau
Last updated : August 25, 2026 4:02 pm
Government and industry representatives deliberate on roadmap for India’s US$ 1 trillion chemicals economy by 2040
The Department of Chemicals and Petrochemicals (DCPC), Ministry of Chemicals and Fertilizers, in partnership with Invest India, convened a high-level CEO Roundtable today to deliberate on India’s ambition of building a US$ 1 trillion chemicals sector by 2040.
Union Minister of Chemicals and Fertilizers J.P. Nadda and Minister of State Anupriya Patel chaired a high-level industry roundtable titled “India’s Chemicals Sector: Charting the Path to US$ 1 trillion by 2040.” The session focused on strategic priorities to establish India as a global hub for chemical manufacturing and innovation.
The roundtable was attended by more than 100 delegates from chemical industry from across the globe representing both foreign and domestic industry such as BASF, Tronox, Exxonmobil, Fujifilm, Lubrizol, Dow Chemicals, UPL, Reliance, DCM Shriram, HMEL, SABIC, Haldia Petrochemicals amongst others.
Representatives from more than 30 leading global and Indian chemical companies across speciality chemicals, petrochemicals and bulk chemicals participated in the discussions.
During the interaction, industry leaders highlighted several issues critical to the long-term competitiveness and growth of the sector, including:
* Facilitation of large-scale investments through appropriate financing and investment-support mechanisms, particularly for capital-intensive upstream projects.
* Upgradation of existing PCPIRs from industrial zones into major chemical manufacturing hubs which means upgrading infrastructure facilities and utilities for the industry.
* Adopting Trade remedial measures to provide level playing field to ensure protection against unfair trade practices.
Greater support for R&D, innovation and technology development, through following measures:
- To attract global talents from abroad, special tax breaks may be offered as done in countries like China, Japan and UK.
- A Sovereign Fund may be formed to facilitate technology acquisition on the lines of S. Korea and USA.
* Time-bound single-window clearances for chemical and petrochemical projects, particularly given that the multiple Central and State-level approvals involved in setting up such projects.
* Development of a comprehensive National Feedstock Policy to reduce vulnerability to geopolitical and global supply-chain disruptions.
Addressing the gathering, Nadda emphasised that the sector has to touch US$ 1 trillion vision by 2040 in the country. He said the Government is committed to establishing a continuous and institutionalised dialogue mechanism with industry, with the objective of identifying impediments and translating suggestions into time-bound action. It would require sustained investment, technology development, stronger domestic manufacturing capabilities.
In her address, Anupriya Patel highlighted recent government reforms and schemes aimed at promoting manufacturing across various industries, including the chemical and petrochemical sectors. She specifically noted initiatives such as Bhavya Rasayan, Coal Gasification, Rare Earth Corridors, and the Critical Mineral Mission, alongside key tax and labour reforms. Furthermore, she assured the industry that the government is committed to transitioning from a regulatory facilitator to an active growth partner, thereby reducing administrative burdens and ensuring the long-term viability of investments.
Stressing the importance of government and industry partnership, Tejveer Singh, Secretary, Department of Chemicals and Petrochemicals, stated that the Chemicals sector offers major opportunities across given the expanding domestic demand across key downstream sectors. He emphasized the Department's commitment to collaborating closely with industry leaders to shape future policy interventions. On behalf of the Ministry, he also responded to the questions from the industry leaders.
Speaking on the occasion, Nivruti Rai, MD & CEO, Invest India mentioned that Chemicals are not an industry in isolation, they are the foundation for almost every sector that will shape the next decade. The opportunity for India in chemicals is not simply to produce more; it is to produce what the next generation of industry will need. She expressed that India’s chemicals demand is growing at nearly twice the global rate, driven by sectors such as EVs, semiconductors, renewable energy and textiles.