India’s chemical sector is poised for significant expansion, with Boston Consulting Group (BCG) projecting the market to reach US$ 300 billion (Rs. 24,900 billion) by 2030. This growth is expected to be propelled by robust domestic consumption across key end-use sectors such as automobiles, construction, agriculture, and personal care, alongside supportive government policies and a steadily expanding manufacturing base.
Beyond domestic demand, rising global export opportunities are set to bolster the industry as international supply chains diversify production away from traditional manufacturing hubs. This dual momentum positions India’s chemical market for sustained growth in the coming decade.
BCG highlights India’s strategic advantages, including a young and skilled workforce, competitive manufacturing costs, and improving infrastructure, which are likely to attract additional investment from global chemical players. The report notes that the industry’s expansion complements broader national initiatives, including the Make in India programme, aimed at enhancing value addition and strengthening the domestic manufacturing ecosystem.
Export prospects are expected to increase as Indian chemical producers scale up production capabilities to meet demand from Southeast Asia, Africa, and the Middle East. Greater integration into global value chains is anticipated to enhance competitiveness, encourage technological innovation, and solidify India’s position as a key player in the international chemical market.
Overall, the combination of strong domestic consumption, favourable policy support, export potential, and strategic industrial initiatives sets the stage for India’s chemical industry to emerge as a global growth leader by 2030.
