https://indianmasterminds.com

ADVERTISEMENT
ADVERTISEMENT

NITI Aayog Unveils Roadmap to Transform India’s Chemical Sector into $1 Trillion Powerhouse by 2040— Details Inside

New policy roadmap targets doubling production, closing a $31B trade gap, and creating 7 lakh jobs as India aims for 12% global market share in chemicals.
Indian Masterminds Stories

New Delhi, — In a bold move to elevate India’s chemical industry onto the global stage, NITI Aayog has unveiled a comprehensive reform strategy aiming to transform the sector into a $1 trillion powerhouse by 2040. The report, titled “Chemical Industry: Powering India’s Participation in Global Value Chains,” outlines sweeping fiscal, infrastructural, and regulatory interventions designed to reduce import dependence and enhance global competitiveness.

The plan proposes a structured mix of financial incentives, port-based chemical hubs, R&D support, faster environmental clearances, and an aggressive push on skilling, aiming to double chemical production by 2030 and eliminate India’s $31 billion trade deficit in the sector.

Read Also: NITI Aayog Unveils ‘India’s Data Imperative’ Report: Pushes for Robust Data Quality to Boost Digital Governance

Key Strategic Highlights:

  • Operational Expenditure Support Scheme:
    A proposed incentive mechanism will provide financial support for incremental domestic chemical production. Selection will be based on strategic criteria such as import substitution potential, export prospects, end-use market relevance, and vulnerability due to over-dependence on single-source countries.
  • Infrastructure Expansion:
    NITI Aayog has recommended the creation of world-class chemical hubs governed by empowered committees, alongside a major upgrade to port infrastructure. These enhancements are designed to ease logistics, improve connectivity, and facilitate smoother trade flows.
  • R&D and Innovation Push:
    The report stresses increased investment in research and development to foster self-reliance, technological innovation, and transition toward green and specialty chemicals—areas where India has significant untapped potential.
  • Regulatory Streamlining:
    A key bottleneck—slow environmental clearances—has been addressed in the recommendations. The report advocates for faster, more transparent project approvals to reduce delays and increase investor confidence.
  • Trade Policy Reforms:
    NITI Aayog has urged the inclusion of sector-specific needs in all upcoming free trade agreements (FTAs). The goal is to ensure that tariff structures, input access, and origin rules directly benefit domestic chemical players.

Read Also: NITI Aayog Urges Fiscal Push, Auto Clusters to Boost India’s Role in Global Auto Market

Skilling and Employment Generation:
With the chemical sector expected to expand rapidly, the report calls for comprehensive workforce development programs. These will address current skill shortages and prepare an estimated 700,000 skilled professionals needed by 2040.

Targets & Outcomes by 2030 and Beyond:

  • Chemical production capacity to double.
  • $31 billion trade deficit (as of 2023) to be eliminated by 2030.
  • $35–40 billion in new chemical exports to be added.
  • India’s GVC share to rise to 5–6% by 2030, and 12% by 2040.
  • 700,000 new jobs to be created in the sector.

A Strategic Pivot

This initiative is seen as part of India’s broader goal to become a key player in global manufacturing and supply chains. With rising global diversification from China, the Indian government is seizing the opportunity to expand in specialty and green chemicals, areas of rising global demand.

Experts say the roadmap—if implemented effectively—could significantly reposition India in the global chemical landscape while boosting self-reliance, economic growth, and employment.


Indian Masterminds Stories
ADVERTISEMENT
ADVERTISEMENT
Related Stories
ADVERTISEMENT
ADVERTISEMENT
NEWS
medha-rupam-imgs
New Noida DM Medha Roopam Vows to Fast-Track Jewar International Airport Completion - Here Are Her Top Priorities
manoj and goyal
IAS Manoj Kumar Singh Bids Emotional Farewell as SP Goyal Assumes Charge as UP Chief Secretary
Madhya Pradesh Cabinet decisions
Boost for Madhya Pradesh & Jyotirlinga Yatra: Central Cabinet Approves Itarsi-Nagpur Fourth Rail Line Project - Details Inside
Nashik-Kumbh-Mela-
Kumbh 2027: Uttarakhand Chief Secretary Directs Officials to Submit Comprehensive Action Plan by August-End
NTPC
NTPC Executive Directors Sudip Nag & Rajeev Akotkar Retire After Decades of Service - Details Inside 
DPIIT
DPIIT Signs MoU with HDFC Capital Advisors to Boost Innovation in Affordable Housing and PropTech
Engineers India Limited EIL Engineers India Ltd (EIL)
Asheesh Sengupta Superannuates as Executive Director (Supply & Chain Management), Engineers India Ltd (EIL)
cmd_ireda_
IREDA CMD Leads Key Panel on Accelerating Renewable Energy at 22nd RE Summit- Know More
ADVERTISEMENT
ADVERTISEMENT
Videos
Ananth Rupanagudi IRAS
IRAS Ananth Rupanagudi’s Take on Corruption, Reform, and Duty
WhatsApp Image 2025-07-26 at 13.16
What Most Indians Don't Know About Jim Corbett
WhatsApp Image 2025-07-24 at 18.24
How Fireflies and Butterflies Returned In Corbett’s Homeland
ADVERTISEMENT
UPSC Stories
BPSC Bihar police
From Lantern Light to Police Uniform: How Praveen Kumar from a Small Bihar Village Cracked BPSC to Become SDPO
From a lantern-lit village in Bihar to becoming an SDPO, Praveen Kumar's journey is a testament to resilience,...
IAS Priyansha Garg
Why Mindset Matters: IAS Priyansha Garg’s Mental Health Mantra for UPSC
After two failed prelims, Priyansha Garg cracked UPSC with AIR 31 in her fourth attempt, proving how...
Ashish Akshat
From Setback to State Topper: How Ashish Akshat Topped JPSC While Working Full-Time
Ashish Akshat from Dhanbad topped JPSC 2023, proving that resilience, discipline, and family support...
Social Media
Mudumalai Tiger Reserve
Mudumalai Tiger Reserve: From India’s First Sanctuary to a Tiger Conservation Success Story | International Tiger Day Special
IAS Supriya Sahu Hails Mudumalai's Role in Tiger Conservation on Tiger Day. Declared in 1940, Now Among...
Mangroves
Mangroves: Nature’s Shield Against Disasters, Says Officer Parveen Kaswan on Mangroves Day - Watch His Post Here
Mangroves, with their dense, interlaced root systems, form a mesh-like structure that serves as a buffer...
Retired IPS Inderjit Singh Sidhu
Purpose Doesn’t Retire: How 88-Year-Old Retired DIG Becomes Chandigarh’s ‘Quiet Warrior’ of Cleanliness
Inderjit Singh Sidhu’s Dawn Patrol Earns Applause, Mahindra’s Praise for a Man Who Chose Action Over...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
newsImage-1672644662501
Mastermind in the Mountains: Inside Prabodh Saxena’s Model of Governance
medha-rupam-imgs
New Noida DM Medha Roopam Vows to Fast-Track Jewar International Airport Completion - Here Are Her Top Priorities
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
Ananth Rupanagudi IRAS
WhatsApp Image 2025-07-26 at 13.16
WhatsApp Image 2025-07-24 at 18.24
ADVERTISEMENT
ADVERTISEMENT