India's chemical exports could hit $81 billion by 2030, says NITI Aayog

India's chemicals industry has a clear growth roadmap for the next decade, with a new NITI Aayog report outlining an export target of up to $81 billion by 2030. The strategy aims to expand domestic production, reduce import dependence, and position the country as a net-zero importer in the sector.

The report breaks down the target into three key segments: $45 billion from specialty chemicals, $5-10 billion from inorganic chemicals, and $26 billion from petrochemicals. Achieving this combined target of $76-81 billion would require a consumption compound annual growth rate (CAGR) of 10-11% and a production CAGR of 14% over the next five fiscal years.

Domestic demand is projected to reach $290-310 billion by fiscal 2030, representing roughly 5-6% of global chemical consumption. To meet this demand and cut import reliance, the report estimates that India's chemical production must double from around $110 billion in fiscal 2023 to $220-280 billion by fiscal 2030. This expansion could also generate between 700,000 and one million new jobs.

The report identifies dyes and pigments, paints and coatings, agrochemicals, and flavours and fragrances as key growth drivers for specialty chemical exports. While India has already gained traction in major markets—with the US accounting for 17% and Brazil 16% of its specialty chemical exports in 2024—its overall presence in global import markets remains around 8%, indicating significant room for expansion.

India's chemicals industry benefits from strong domestic demand, supportive policies, and robust manufacturing capabilities. However, the report flags infrastructure gaps, regulatory hurdles, and the need for technological advancement as key challenges. It recommends targeted investments, policy interventions, and an innovation-driven ecosystem to help India climb the global chemicals value chain and achieve its 2030 ambitions.