India’s chemical sector is set for significant expansion over the remainder of the decade, with the market projected to reach nearly ₹24,900 billion (US$ 300 billion) by 2030, according to a report by Boston Consulting Group (BCG). The growth outlook reflects strong demand across multiple end-use industries and increasing integration of Indian manufacturers into global supply chains.
Domestic Demand to Drive Growth
BCG’s report highlights that rising consumption in sectors such as automobiles, construction, agriculture, and personal care will be a key growth driver for the chemical industry. This demand is being supported by favourable government policies, a broadening manufacturing base, and ongoing investments aimed at strengthening domestic production capabilities.
Export Opportunities and Global Supply Chain Shifts
In addition to robust domestic demand, India’s chemical industry is expected to benefit from expanding export opportunities. As global companies diversify sourcing and production away from traditional manufacturing hubs, Indian chemical manufacturers are well positioned to capture a larger share of international markets. Growing demand from regions such as Southeast Asia, Africa, and the Middle East is likely to support export-led growth.
Strategic Advantages and Investment Potential
The report points to India’s strategic strengths, including a young and skilled workforce, cost-competitive manufacturing, and improving infrastructure, as factors that could attract higher investment from global chemical players. The sector’s expansion is also aligned with national initiatives such as Make in India, which aim to boost value addition and enhance the overall manufacturing ecosystem.
Path Toward Higher Competitiveness
With deeper participation in global value chains, India’s chemical industry is expected to see improvements in competitiveness, technology adoption, and product sophistication. As producers scale up capacities and capabilities, the sector is likely to play a larger role in India’s industrial growth and export performance over the coming years.
Summary:
India’s chemical market is projected to grow to about US$ 300 billion by 2030, driven by strong domestic demand, favourable policy support, and rising export opportunities. Backed by cost competitiveness, infrastructure improvements, and global supply chain diversification, the sector is positioned for sustained long-term growth.
This article is intended solely for educational and informational purposes. The securities or companies mentioned are provided as examples and should not be considered as recommendations. Nothing contained herein constitutes personal financial advice or investment recommendations. Readers are advised to conduct their own research and consult a qualified financial advisor before making any investment decisions.
Investments in securities markets are subject to market risks. Please read all related documents carefully before investing.