India’s Chemical Market To Reach $29.7 Billion, Forecasts 3.26% CAGR Growth By 2029

The Indian chemicals market, valued at $220 billion since 2023, is expected to reach USD 383 billion by 2030.

Thus, underpinning the growth by 8.1 percent anticipated CAGR from 2021 to 2030.

As a sixth largest globally by chemical sales, India is getting huge foreign direct investment. Which had cumulatively reached USD 21.7 billion in the period between April 2000 to September 2023.

Further benefiting from 100 percent FDI under automatic route, this sector is currently enjoying investor’s confidence and a huge growth.

In addition, India’s Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs), is predicted to attract investment worth USD 420 billion.

Meanwhile, the specialty chemicals will likely grow at a CAGR of 12 per cent from 2020 to 2025, owing to their innovations and its huge demand across different applications.

In order to bolster growth in this sector, seven of CIPET (Central Institutes of Petrochemicals Engineering & Technology) and IPFT (Institute of Pesticide Formulation Technology) have been established to ensure, that a skilled human resource will be able to contribute to sector’s growth.

In 2024, the market’s per capita value will reach USD 20.6 with a 21% added value margin.

Overall, the chemical market’s output is forecasted to reach $143.3 billion with a 2.71% CAGR over the next five years.

As for the employment, it is projected to reach 1 million by 2024, which will be backed by CAGR of 3.19 per cent in the chemical sector.

Several factors are propelling the growth of this sector. These include increasing domestic consumption, which goes hand in hand with demand from end-use industries such as packaging and automotive.

Additionally, favorable government policies, enhanced infrastructure, and the availability of skilled labor at competitive prices are also significantly contributing to the expansion of India’s chemical sector.