The Indian government is planning to introduce a Production Linked Incentive (PLI) scheme specifically targeting basic chemicals, aiming to strengthen the country’s manufacturing capabilities and reduce dependency on imports. The scheme will focus on promoting the domestic production of essential chemicals, including intermediates, solvents, and raw materials critical for industries like pharmaceuticals, agrochemicals, and specialty chemicals.
The proposed PLI scheme aligns with India’s broader strategy to enhance self-reliance in key sectors, support economic growth, and create job opportunities. By incentivizing domestic manufacturers with financial benefits linked to production levels, the government intends to attract investments, encourage technological advancements, and boost exports. Basic chemicals form the foundation of various downstream industries, making this initiative crucial for bolstering the entire value chain.
Additionally, the scheme is expected to support India’s sustainability goals by encouraging manufacturers to adopt environmentally friendly processes and technologies. This move comes at a time when global supply chain disruptions and raw material shortages have highlighted the importance of developing robust domestic capabilities. Once implemented, the PLI scheme for basic chemicals could significantly contribute to India’s vision of becoming a global manufacturing hub for chemicals.
