NITI Aayog Outlines Roadmap to Boost India’s Chemicals Industry - News

With a combination of fiscal and non-fiscal incentives, according to a recent report by NITI Aayog, India possesses the potential to be globally recognized as a major player in the chemicals sector. The report revealed a roadmap that aims to increase the country’s share in the global chemicals value chain from 3-3.5 percent to 6 percent by 2030 and 10 to 12 percent by 2040.

The report, titled ‘Chemical Industry: Powering India’s Participation in Global Value Chains’, emphasizes the need for coordinated national efforts that include policy reforms, infrastructure upgrades, technological advancements, and international partnerships.

The report recommended offering operational expenditure subsidies for chemicals. The report stated that incremental production for chemicals should be incentivized based on import bill, export potential, single-source country dependence, or end-market criticality. The proposed scheme would provide incentives on incremental sales to selected participants over a set period.

The roadmap identified key growth areas such as boosting exports in agrochemicals and pigments, which are high-potential segments, and investing in sunrise sectors like battery and electronic chemicals. It also stressed the importance of reducing import reliance on products like PVC, and improving technology access for import-dependent chemicals like acetic acid and plastic additives.

NITI Aayog noted that with timely action, India could reach a net-zero trade position in chemicals and grow into a US$1 trillion industry by 2040, adding that the plan is a well-defined path that now requires prompt implementation.