India’s chemicals market is poised for significant growth, with projections indicating that the value added in this sector will reach approximately $29.7 billion in 2024, and the overall market output is anticipated to be $143.3 billion, reflecting a compound annual growth rate (CAGR) of 2.71% over the next five years.
This expansion is driven by increasing domestic consumption and demand from end-use industries such as packaging and automotive. Favorable government policies, improving infrastructure, and the availability of skilled labor at competitive costs further enhance the sector’s attractiveness. Notably, the specialty chemicals segment is projected to grow at a CAGR of 12% from 2020 to 2025, driven by innovations and increasing demand across various applications.
The chemicals sector contributes 12% to India’s total exports, highlighting its significance in the global market. The establishment of seven Central Institutes of Petrochemicals Engineering & Technology (CIPET) and the Institute of Pesticide Formulation Technology (IPFT) will drive skill development, ensuring a skilled workforce to support the industry’s growth.
Overall, the Indian chemicals market is set to witness substantial growth across various metrics, positioning it as a key player in the global chemical industry.
