India’s chemicals and petrochemicals sector has achieved a significant milestone in research, development, and industrial self-reliance. Following a proposal by the Department of Chemicals and Petrochemicals (DCPC), the Department of Science and Technology (DST) officially included Advanced Chemicals, Petrochemicals, and Material Technologies as an eligible technology area under the premier Research, Development and Innovation (RDI) Scheme, effective October 8, 2026.

Launched under the leadership of Prime Minister Narendra Modi, the RDI Scheme features a substantial Rs. 1 lakh crore ($12 billion) corpus designed to catalise private-sector investments. The inclusion of this new sector unlocks essential, transformative opportunities for long-term financing and refinancing. Enterprises can access long tenors at low or nil interest rates, facilitating the creation of breakthroughs in advanced materials and highly efficient manufacturing processes.

This strategic policy shift directly addresses India's industrial competitiveness by aiming to reduce heavy import reliance on critical intermediates and key starting materials. Furthermore, the funding aims to foster the development of indigenous technologies for advanced industrial applications. These include high-value segments like battery chemicals for electric vehicles, semiconductor-grade gases, and specialty chemicals.

Ultimately, this initiative aligns with the government's broader economic goal to accelerate local innovation, safeguard domestic supply chains from global shocks, and elevate the Indian chemical sector into a $1 trillion global hub by 2040.