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
Cochin Shipyard CSL
Cochin Shipyard (CSL) Delivers ‘Mahe,’ First of Eight Anti-Submarine Warfare Shallow Water Crafts to Indian Navy
IFS Raj Kumar Singh
Who Is IFS Raj Kumar Singh? Diplomat Appointed Ambassador to Guatemala, Concurrently Accredited to El Salvador and Honduras
IOFS Officer
IOFS Officer Dinesh Singh Repatriated to Parent Cadre to Avail Promotion Benefits - Know More
IFS Manish Gupta
Who Is IFS Manish Gupta? The Senior Diplomat Appointed India’s Next Ambassador to Ireland
BEML Limited
BEML Partners with Italy’s Tesmec to Introduce Advanced Surface Miner Equipment in India
Yogi Adityanath Ayodhya visit in Diwali
Sambhal Emerges as Key Pilgrimage Hub: UP Government Sanctions Rs. 171 Lakh for Temple Development
Gujarat Smart Police Station
Next-Gen Policing in Gujarat: Infocity Smart Police Station to Include 2BHK Residences
Modi Nitish Kumar
Who Will Lead Bihar? PM Modi Launches NDA Campaign with CM Nitish Kumar at Samastipur Rally
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-23 at 10.40
Everybody Needs To Know What Is Transpiring Behind Closed Doors Of Courts
WhatsApp Image 2025-10-19 at 12.23
UPSC Journey Should Be Enjoyable, Not Cumbersome
WhatsApp Image 2025-10-16 at 15.16
The Many Facets of Former IRS Officer and Author, Giselle Mehta | Video Interview
ADVERTISEMENT
UPSC Stories
IAS Rupal Rana UPSC
How Rupal Rana Cracked UPSC CSE 2023 with AIR 26 After Four Attempts
UPSC Topper Rupal Rana secured AIR 26 in 2023 after four attempts. Learn her preparation strategy, booklist,...
Ankita Parashar RAS 2023
4 Attempts, 1 Dream, 0 Excuses: Meet RAS Topper Ankita Parashar, Who Fulfilled a Daughter’s Promise & Secured Rank 2 | Exclusive Interview
Ankita Parashar, a teacher-turned-officer from Pushkar, fulfilled her late father’s dream by securing...
Kushal Chaudhary RAS
From Lab Assistant’s Grit to Rajasthan Topper: How Kushal Chaudhary Topped RAS 2023 with Self-Study | Preparation, Strategy & Interview
Kushal Chaudhary, a farmer’s son and lab assistant from Ajmer, topped RAS 2023 through self-study, overcoming...
Social Media
IFS Parveen Kaswan
Heartbreak by the River: 15-Day-Old Elephant Calf Rejected by Mother, Rescued by IFS Parveen Kaswan and His Team
Jaldapra, West Bengal: In a moving incident that tugs at the heart, a 15-day-old elephant calf was rescued...
Ashwini Bhide IAS and Anand Mahindra
Who Is IAS Ashwini Bhide, Hailed as a Role Model for Mumbai Metro Transformation by Anand Mahindra?
From heritage to high-tech: Bhide’s leadership in Metro Line 3 earns public praise and admiration
World Rhino Day India
On World Rhino Day, IFS Officer Parveen Kaswan Shares Rare Insights - India Now Hosts 80% of the World’s One-Horned Rhinos
September 22 Marks Global Call for Rhino Conservation; India Holds 80% of World’s Greater One-Horned...
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Latest
Cochin Shipyard CSL
Cochin Shipyard (CSL) Delivers ‘Mahe,’ First of Eight Anti-Submarine Warfare Shallow Water Crafts to Indian Navy
IFS Raj Kumar Singh
Who Is IFS Raj Kumar Singh? Diplomat Appointed Ambassador to Guatemala, Concurrently Accredited to El Salvador and Honduras
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT
Videos
WhatsApp Image 2025-10-23 at 10.40
WhatsApp Image 2025-10-19 at 12.23
WhatsApp Image 2025-10-16 at 15.16
ADVERTISEMENT
ADVERTISEMENT