FDI in Chemical Industry in India

The chemical industry in India is an indispensable part of the country's economy, for it constitutes around 6% of the country's GDP. The chemicals industry in India is highly diversified, covering more than 80,000 commercial products. It is broadly classified into Basic chemicals, Specialty chemicals, and Agrochemicals.

The Indian chemicals industry, which employs more than 2 million people, is projected to reach $300 bn by 2025. India is a robust global dye supplier, accounting for approximately 16% of the world's dyestuff and dye intermediates. The chemicals industry in India has been de-licensed except for few hazardous chemicals. Upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and Plastic parks will provide state-of-the-art infrastructure for the Chemicals and Petrochemicals sector.

During the period 2020-25, demand for chemical goods is predicted to expand at a rate of about 9% per year.

100% FDI Chemical Industry in India is allowed under the automatic route (except in certain hazardous chemicals).


  • 1.4 %

    Nation's Gross Value Added

  • 11.3 %

    Chemical products exports share

  • 2.5 %

    Contribution to global chemical sales

  • 9 % P.A.

    Demand of chemical product to grow

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