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India's chemical sector is extraordinarily diverse, covering more than 80,000 commercial goods and can be divided into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers.

India produces 16% of all dyestuffs and dye intermediates in the world. With a global market share of 15%, the Indian colorants sector has also emerged as a significant player.

After the United States, Japan, and China, India is the world's fourth-largest producer of agrochemicals. India’s easy access to the Middle East, the world's largest petrochemical feedstock supplier, benefits the bulk production of petrochemicals.

Reasons for Investing

  • Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIR), namely Andhra Pradesh, Gujarat, Odisha, and Tamil Nadu, are estimated to attract an investment of US$ 104.36 billion. India is ranked 17th in global chemical exports (excluding pharmaceutical products) and 7th for chemical imports.
  • Duty-free procurement of goods for the functioning of Special Economic Zones (SEZ) like Noida, Kochi, Chennai, etc.
  • MSMEs in domestic chemical sectors have showcased a revenue growth of 18-23%.
  • India boasts world-class engineering facilities as well as significant research and development capabilities. 

Industry Growth Factors

  • India’s specialty chemicals market growth is driven by increased demand from industries such as food processing, personal care, and home care.
  • Indian specialty chemical companies are increasing their capacities to meet increased domestic and international demand.
  • The recent Union Budget has an allocation of US$ 32.2 million for the Department of Chemicals and Petrochemicals.
  • With global firms looking to de-risk their supply chains heavily reliant on China, India's chemical sector has a lot of room to grow.


TIGS brings out the best solutions to assist your business in finding the right way forward to penetrate the Indian market. We are a one-stop solution to make the right trade and investment decisions in India as per your business needs.

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