India's Path to a Trillion-Dollar Chemical Industry

India aims to become a global chemical manufacturing powerhouse by establishing world-class chemical hubs and port-infrastructure clusters. A NITI Aayog report outlines strategies for increasing India's Global Value Chains share to 5-6% by 2040, creating 7 lakh jobs, and achieving a USD 1 trillion chemical sector.

In a strategic move towards positioning itself as a leader in the global chemical space, India is contemplating the establishment of world-class chemical hubs. This initiative, outlined in a NITI Aayog report, also involves developing eight high-potential port-infrastructure clusters by 2040.

The report, titled 'Chemical Industry: Powering India's Participation in Global Value Chains', suggests that targeted fiscal and non-fiscal reforms could enable India to boost its Global Value Chains share to 5-6% and capture a USD 1 trillion chemical sector. This growth could result in an additional 7 lakh jobs by 2030.

The current 3.5% share in global value chains and a USD 31 billion trade deficit in 2023 highlight India's dependency on imports. The report proposes simplified environmental clearances and strategic Free Trade Agreements to enhance India's competitiveness.