化学工业：推动印度参与全球价值链

Powering India’s participationin Global Value Chains Chemical Industry: Powering India’s participationin Global Value Chains July 2025 Disclaimer NITI Aayog conducted a study on the ChemicalIndustry: Powering India’s participation in GlobalValue Chains. While due care has been exercised to prepare thereport using the data from various sources, NITI Aayogdoes not confirm the authenticity of data and themethodology to prepare the report. While due care has also been exercised to ensurethe accuracy of analysis and arguments supportedby existing literature, the possibility of alternateinterpretations cannot be ruled out. NITI Aayog shallnot be held responsible for the findings or opinionsexpressed in the document. CONTENTS Preface01 Executive Summary03 Introduction09 1India’s chemicals landscape:Outlook and aspiration10 2 22Framework to define roadmap for India’schemical industry Structural shifts to help expand India’s presencein the chemicals global value chain3 Conclusion74 Preface Over the past decade, the Governmentof India has introduced a series oftransformative policies aimed ataccelerating economic growth, enhancingcompetitiveness, and integrating keysectors into Global Value Chains (GVCs).Reforms such as the implementationof the Goods and Services Tax (GST),liberalization of Foreign Direct Investment(FDI), and initiatives like “Make in India” and“Aatmanirbhar Bharat” have significantlycontributed to improving the businessenvironment, bolstering manufacturing, andfostering industrial growth. The Production-Linked Incentive (PLI) schemes and strategicpolicy interventions across multiple sectorshave further strengthened India’s positionas a global manufacturing hub. 3to3.5 percent of global consumption in2023. For instance, India’s petrochemicalindustry has traditionally emphasizedthe production of bulk, commodity-gradepolymers and chemicals, a trend reflectedin the current utilization patterns of keyfeedstocks. An overwhelming share ofIndia’s propylene and ethylene is directedtoward polypropylene and polyethyleneproduction respectively—significantlyhigher than global averages. Similardisparities exist across other criticalfeedstocks such as benzene and butadiene,which are predominantly channelledinto basic derivatives rather than moreadvanced, value-added chemicals. This focus on upstream, large-volumeoutputs has led to limited diversificationinto specialty and high-value downstreamproducts, thereby constraining the sector’sglobal competitiveness. To realign theindustry with international trends andunlock its full potential, there is a growingneed for strategic interventions. With highreliance on imports, limited feedstockavailability, infrastructural bottlenecks,and regulatory complexities, there areseveral challenges that must be addressedto enhance India’s competitiveness andstrengthen its foothold in the globalchemicals value chain. Among these critical sectors, thechemicalsindustry stands as a pillar ofIndia’s industrial and economic landscape.With a market size of approximately$220 billion in 2023, the sector is poisedto grow exponentially, reaching around$400 to 450 billion by 2030 and $850 to1,000 billion by 2040.1India is currentlythe world’s sixth-largest and Asia’s thirdlargest producer of chemicals, supplyingessential raw materials to industries such aspharmaceuticals, textiles, automotive, andagriculture. The sector’s dynamic growthtrajectory underscores its potential to playa key role in India’s aspiration of achieving a$5-trillion economy. This report explores the current landscape,identifies critical imbalances, andoutlines actionable pathways to fostera more diversified and globally alignedpetrochemical value chain in India. Despite its strengths, India’s participationin the global chemicals market remainsrelatively modest, accounting for only Executive summary India’s chemicals industry is a cornerstoneof the country’s manufacturing ecosystem,contributing approximately 7 percent tothe national gross domestic product (GDP)and supplying essential raw materialsto critical industries such as agriculture,pharmaceuticals, textiles, automotive, andconstruction. Ranked as the sixth-largestchemicals producer globally and third inAsia, India holds immense potential forexpansion—provided it receives the rightstrategic support from the Government.The domestic chemicals market was valuedat $220 billion in 2023 and is expectedto grow to around $400 to 450 billion by2030, with aspirations to reach about $850to 1,000 billion by 2040 complementedby the Government support. However,despite its robust growth trajectory, India’sparticipation in global chemicals valuechains (GVCs) remains limited, with its sharein global chemicals consumption standingat 3 to 3.5 percent in 2023. logistics inefficiencies, further impact costcompetitiveness. Additionally, complexregulatory frameworks, environmentalcompliance hurdles, and skill shortagespresent significant barriers to domesticproducti