Embracing India's Rise as a Chemical Hub

India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP. The industry covers more than 80,000 commercial products and accounts for 2.5% of the world’s global chemical sales, exporting to over 175 countries. The industry is expected to reach US$ 304 billion by 2025 at a CAGR of 9.3%, driven by rising demand in the end-user segments for specialty chemicals and petrochemicals. India's chemical sector is currently estimated to be worth US$ 220 billion in 2022 and is anticipated to grow to US$ 300 billion by 2025 and US$ 1 trillion by 2040. Now, let's discuss the growth projections for the Indian chemical industry till 2040.

By 2040, India is projected to become the third-largest chemical producer in the world, after the United States and China. The Indian chemical sector is projected to grow by 11 to 12 percent during 2021–27 and by 7 to 10 percent during 2027–40, tripling its global market share by 2040. This growth is expected to be driven by a range of factors, including rising domestic consumption, which is expected to account for more than 20 percent of incremental global consumption of chemicals over the next two decades. Domestic demand is expected to rise from $170 billion to $180 billion in 2021 to $850 billion to $1,000 billion by 2040. This growth will be driven by increasing domestic demand, export opportunities, and the shift of global manufacturing from China to India.