Maharashtra is preparing to roll out a dedicated Chemical Sector Policy by the end of October and is examining plans for massive 2,500–5,000-acre chemical parks in Palghar, Raigad and Ratnagiri, as the state moves to attract fresh investments and push the industry up the value chain.

 

The state is also planning a Rs. 1,000-crore Maharashtra Industries and Investment Fund to back research and development, technology readiness and innovation, senior government officials said at ASSOCHAM MahaChem 2026 in Mumbai.

 

The proposed policy is aimed at strengthening Maharashtra’s already formidable chemical manufacturing base while opening new investment opportunities in specialty chemicals, advanced materials, battery materials, electronic chemicals, advanced polymers, bioplastics and other high-value segments.

 

P Anbalagan, Principal Secretary, Industries, Investment and Services Department, Government of Maharashtra, said the state is moving to build a more integrated ecosystem for chemical manufacturing through targeted policy support, new industrial parks and technology-led growth.

 

“Maharashtra is working towards a dedicated Chemical Sector Policy and we expect to have it in place by the end of October. The policy will address the specific requirements of the sector and complement initiatives already being developed across bioplastics, biotechnology, biomanufacturing and other emerging areas,” Anbalagan said.

 

He said Palghar, Raigad and Ratnagiri are among the locations being examined for chemical parks spanning 2,500 to 5,000 acres.

 

Faster approvals and ease of doing business will also remain central to the state's strategy. The proposed ₹1,000-crore Maharashtra Industries and Investment Fund is expected to strengthen support for R&D, technology readiness and innovation, helping new technologies and businesses move closer to commercialisation.

 

Praveen Pardeshi, Chief Economic Advisor to Chief Minister and Chief Executive Officer, Maharashtra Institution for Transformation (MITRA), said the chemical and pharmaceutical sectors will be critical to Maharashtra’s ambition of becoming a US$1 trillion economy.

 

He said the state's industrial competitiveness will increasingly hinge on access to utilities, energy and water, alongside policy reforms capable of attracting private capital.

 

“Achieving this will require faster growth as well as an ecosystem that attracts greater private investment. For strategic sectors such as chemicals and pharmaceuticals, competitive utility costs, flexible energy access, sustainable water management and supportive policy reforms will be critical to strengthening Maharashtra’s industrial competitiveness.”

 

Chief Minister Devendra Fadnavis said Maharashtra remains focused on attracting new investments through faster clearances, policy incentives and the MAITRI single-window platform.

 

“We invite investors to look at Maharashtra for their next big venture. The state is committed to creating a pro-business environment through the single-window MAITRI platform, faster clearances and robust policy incentives. A sector-specific Chemical Sector Policy will soon be announced, which will further help attract investments and accelerate growth.”

 

Fadnavis said the chemical and petrochemical sector is a primary engine of Maharashtra’s US$1 trillion economy vision, adding that the government would continue to provide financial, logistical and administrative support to create an innovation-led and sustainable industrial base.

 

The scale of the opportunity is underscored by the ASSOCHAM-EY report, Maharashtra: Fuelling India’s Trillion-Dollar Chemical Vision, released at MahaChem 2026.

 

The report estimates Maharashtra’s chemical sector at around US$22 billion, with more than 3,600 factories and 13 designated chemical zones. The state accounts for around 19 per cent of India’s chemical sector GVA and 17 per cent of the country’s chemical exports.

 

The sector also contributes 13.5 per cent of Maharashtra’s industrial output and employs around 3 lakh people, according to the report.

 

But the next growth phase is expected to be driven less by sheer capacity and more by higher-value products and technologies.

 

Opportunities identified in the report include specialty chemicals, battery materials, electronic chemicals, advanced polymers, specialty coatings, pharmaceutical and agrochemical intermediates, bioplastics and other emerging segments.

 

Milind Hardikar, Chair, ASSOCHAM Maharashtra State Council, said the industry is at a turning point and needs to make a decisive shift towards higher-value and more sustainable manufacturing.

 

“The sector is at a critical inflection point. This is not just about capacity expansion, but about a structural shift towards specialty chemicals, high-value derivatives and sustainable green chemistry. We need to balance growth with supply-chain resilience, raw material security and sustainable manufacturing, and this requires industry and government to work together.”

 

MahaChem 2026 – 3i: Catalysing Investments, Innovation and Infrastructure, organised by ASSOCHAM, brought together policymakers, industry leaders, investors, researchers and startups to map the next phase of growth for Maharashtra’s chemical sector.

 

Discussions focused on investment opportunities, innovation and sustainable manufacturing, infrastructure and logistics, standardisation and certification, and the challenge of taking emerging chemical technologies from the laboratory to the market.

 

The broader message from the conclave was clear: Maharashtra’s next chemical-sector push will depend on aligning policy, infrastructure, capital, research and industry execution.

 

With a dedicated sector policy, large-scale chemical parks and a proposed Rs 1,000-crore innovation-focused investment fund, the state is positioning itself to compete for the next wave of global chemical manufacturing investment.