Soaring to become the world's sixth-largest chemical market with a valuation of USD 220 billion in 2023, India's chemical industry is not just growing—it's undergoing a remarkable transformation fueled by explosive expansion in specialty chemicals and petrochemicals.
Key Takeaways
- The Indian chemical industry market size stood at USD 220 billion in 2023, making it the 6th largest chemical industry globally.
- Indian chemicals sector recorded a CAGR of 10-12% from 2018 to 2023, driven by specialty chemicals growing at 12-14%.
- The petrochemical segment of India's chemical industry was valued at USD 110 billion in FY23, accounting for 50% of total chemical output.
- India's caustic soda production reached 4.8 million tonnes in FY23.
- Soda ash production in India was 3.2 million tonnes during FY22-23.
- Ethylene production capacity utilization hit 92% in 2023, producing 4.5 million tonnes.
- India's chemical exports reached USD 25 billion in FY23.
- Organic chemicals exports from India grew 20% YoY to USD 12.5 billion in FY23.
- Petrochemical exports valued at USD 10.2 billion in 2023.
- India's chemical imports totaled USD 28 billion in FY23.
- Petrochemical imports valued at USD 12 billion in 2023.
- Organic chemicals imports USD 15.5 billion FY23.
- India's chemical industry attracted FDI of USD 15 billion from 2014-2023.
- Petrochemical capacity expansion projects worth INR 5 lakh crore underway in 2023.
- New ethylene capacity addition of 2.5 MMTPA planned by 2025.
India's large and fast-growing chemical industry is a significant global player.
Capacity Expansion and Investment
- India's chemical industry attracted FDI of USD 15 billion from 2014-2023.
- Petrochemical capacity expansion projects worth INR 5 lakh crore underway in 2023.
- New ethylene capacity addition of 2.5 MMTPA planned by 2025.
- Propylene capacity to increase by 1.8 MMTPA by FY26.
- PE capacity expansion to 12 MMTPA by 2025 from 9 MMTPA.
- PP capacity set to reach 10 MMTPA by 2027.
- PVC capacity to grow to 5 MMTPA by 2030.
- Methanol capacity investment of USD 2 bn for 2 MMTPA.
- Specialty chemicals greenfield projects INR 50,000 crore.
- Fertilizer capacity addition 12.7 MMTPA urea by 2025.
- Nano urea plants investment USD 0.5 bn capacity 200 cr bottles.
- Caustic soda capacity reached 5.5 MMTPA in 2023.
- Soda ash capacity 4.2 MMTPA operational in FY23.
- Alumina refinery capacity 4 MMTPA expansion planned.
- Agrochem capacity doubled to 0.8 MMTPA in 5 years.
- Dyes capacity 1.2 MMTPA with 20% expansion FY23.
- Chemical industry employs 1.2 million direct workers in 2023.
- R&D investment in chemicals sector USD 1.5 bn annually.
- PLI scheme for chemicals INR 1.5 lakh crore outlay.
- 50 new chemical parks approved with INR 20,000 cr investment.
- Private sector capex in chemicals USD 10 bn in FY23.
- Reliance Industries petrochemical capex USD 8 bn 2021-25.
- IOCL Panipat refinery expansion adds 1.8 MMTPA polymers.
- GAIL USD 0.6 bn investment in specialty chemicals.
- Haldia Petrochem PX capacity 1.2 MMTPA commissioned.
- Gujarat Fluorochemicals expansion capex INR 10,000 cr.
- PI Industries R&D center investment USD 100 mn.
- UPL Ltd agrochem capacity addition 50,000 TPA.
- Tata Chemicals greenfield soda ash plant 0.5 MMTPA.
- Aditya Birla Chemicals capex INR 5,000 cr for EV battery chemicals.
Capacity Expansion and Investment Interpretation
While foreign investors are betting billions on India's chemical promise, the industry itself is placing a staggering trillion-rupee wager on its own future, building everything from mega-refineries to EV battery plants in a transformative expansion that is literally redefining the national formula.
Export Statistics
- India's chemical exports reached USD 25 billion in FY23.
- Organic chemicals exports from India grew 20% YoY to USD 12.5 billion in FY23.
- Petrochemical exports valued at USD 10.2 billion in 2023.
- Dye and dye intermediates exports hit USD 3.8 billion in FY23.
- Pharmaceutical APIs exports from India USD 8.5 billion in 2023.
- Agrochemical exports reached USD 4.7 billion in FY23.
- Plastics and polymers exports USD 6.1 billion in 2023.
- Inorganic chemicals exports grew to USD 2.2 billion FY23.
- Bulk drugs exports USD 1.9 billion in first half FY24.
- India's chemical exports to USA were USD 5.2 billion in 2023.
- Exports to EU countries reached USD 4.8 billion for chemicals in FY23.
- Brazil imported USD 1.1 billion chemicals from India in 2023.
- Turkey chemical imports from India USD 0.9 billion FY23.
- Bangladesh received USD 1.5 billion chemical exports from India.
- Specialty chemicals exports up 25% to USD 5.5 billion in 2023.
- Caustic soda exports from India 0.45 million tonnes valued USD 0.3 bn.
- Soda ash exports 1.2 million tonnes USD 0.4 billion FY23.
- PVC exports reached 0.3 million tonnes USD 0.35 bn in 2023.
- PE exports 1.1 million tonnes USD 1.2 billion FY23.
- PP exports 0.8 million tonnes USD 0.9 billion in 2023.
- Agrochem formulations exports USD 3.2 billion in FY23.
- Technical grade pesticides exports 0.12 MT USD 1.5 bn.
- Dyes exports to EU USD 1.2 billion in 2023.
- Pigments exports USD 0.45 billion FY23.
- Surfactants exports grew to USD 1.1 billion in 2023.
- LAB exports 0.2 MT USD 0.25 bn FY23.
Export Statistics Interpretation
India's chemical industry has confidently signed a global supply contract, delivering everything from life-saving drugs to vibrant dyes and sturdy plastics, proving it's not just mixing solutions but also brewing serious economic growth one compound at a time.
Import Statistics
- India's chemical imports totaled USD 28 billion in FY23.
- Petrochemical imports valued at USD 12 billion in 2023.
- Organic chemicals imports USD 15.5 billion FY23.
- Methanol imports reached 2.5 million tonnes USD 1.1 bn.
- Ethylene dichloride (EDC) imports 0.8 MT USD 0.4 bn FY23.
- VCM imports 0.6 million tonnes USD 0.5 billion in 2023.
- PE imports 3.2 million tonnes USD 3.5 bn FY23.
- PP imports 2.1 MT USD 2.3 billion in 2023.
- Fertilizer imports (urea) 6.5 MT USD 4.2 bn FY23.
- DAP/MOP imports 8.2 MT USD 5.1 billion in 2023.
- Phosphoric acid imports 2.8 MT USD 1.5 bn FY23.
- Benzene imports 1.1 MT USD 1.0 billion 2023.
- Toluene imports 0.7 MT USD 0.65 bn FY23.
- Paraxylene imports 4.5 MT USD 4.8 billion in 2023.
- Acrylonitrile imports 0.25 MT USD 0.4 bn FY23.
- Caprolactam imports 0.35 MT USD 0.55 bn 2023.
- Potash imports 3.2 MT USD 2.1 billion FY23.
- Ammonia imports 1.2 MT USD 0.8 bn in 2023.
- China supplied 45% of India's chemical imports worth USD 12.6 bn in FY23.
- Saudi Arabia chemical exports to India USD 3.5 bn FY23.
- Singapore imports to India chemicals USD 2.8 bn 2023.
- South Korea chemical supplies USD 2.2 bn to India FY23.
- US chemical imports to India USD 1.9 bn in 2023.
Import Statistics Interpretation
India's chemical industry, with its staggering $28 billion import bill for FY23, is essentially writing a series of very expensive love letters to foreign producers, with the gushing $12.6 billion note to China reading, "We can't quit you."
Market Size and Growth
- The Indian chemical industry market size stood at USD 220 billion in 2023, making it the 6th largest chemical industry globally.
- Indian chemicals sector recorded a CAGR of 10-12% from 2018 to 2023, driven by specialty chemicals growing at 12-14%.
- The petrochemical segment of India's chemical industry was valued at USD 110 billion in FY23, accounting for 50% of total chemical output.
- India's chemical industry is projected to reach USD 300 billion by 2025, with a CAGR of 9.3% from 2021-2025.
- Specialty chemicals sub-sector in India grew to USD 32 billion in 2023, representing 15% of the total chemical market.
- The Indian chemical market expanded by 15% YoY in FY22 to reach INR 16 lakh crore.
- Agrochemicals segment valued at USD 12 billion in FY23, with 20% domestic consumption growth over FY22.
- India's dyes and intermediates industry size was USD 8.5 billion in 2023, with exports contributing 40%.
- Pharmaceutical APIs and intermediates market in India reached USD 15 billion in 2023.
- Bulk chemicals production value in India hit USD 100 billion in FY23.
- India's chemical industry GDP contribution was 2.5% in 2023, up from 2.1% in 2019.
- Fine chemicals segment grew at 13% CAGR to USD 5 billion by 2023.
- Polymer market in India valued at USD 25 billion in FY23, with 10% annual growth.
- Inorganic chemicals market size was USD 18 billion in 2023.
- India's chemical industry expected to grow to USD 400 billion by 2030 at 12% CAGR.
- In 2022, India's chemical sales revenue reached INR 18.2 lakh crore.
- Organic chemicals market valued at USD 120 billion in FY23.
- India's chemical industry capacity utilization averaged 75% in 2023.
- Fertilizer chemicals segment size USD 30 billion in 2023.
- Paints and coatings chemicals market at USD 10 billion in FY23.
- In FY21, chemical industry turnover was USD 163 billion.
- Adhesives and sealants market grew to USD 2.5 billion in 2023.
- Textile chemicals market size USD 4 billion in India 2023.
- Water treatment chemicals market at USD 1.8 billion in FY23.
- Explosives and propellants chemicals valued at USD 1.2 billion.
- Rubber chemicals market size USD 0.9 billion in 2023.
- Flavours and fragrances industry at USD 3 billion in India.
- Catalysts market grew to USD 1.5 billion by 2023.
- Surfactants market size USD 2.2 billion in FY23.
- Plastic additives market valued at USD 1.1 billion in 2023.
Market Size and Growth Interpretation
While India's chemical industry might seem like it's turbocharged on its own specialty brews, hitting sixth globally at $220 billion with ambitions to double by 2030, it is quite literally built on a $110 billion petrochemical spine, proving that the sector is both a high-value sprinter and a volume-driven juggernaut.
Production Volume
- India's caustic soda production reached 4.8 million tonnes in FY23.
- Soda ash production in India was 3.2 million tonnes during FY22-23.
- Ethylene production capacity utilization hit 92% in 2023, producing 4.5 million tonnes.
- Propylene output in India reached 2.8 million tonnes in FY23.
- Polyethylene production volume was 8.2 million tonnes in 2023.
- Polypropylene production stood at 5.1 million tonnes in FY23.
- PVC resin production in India achieved 2.4 million tonnes in 2023.
- Methanol production volume was 0.8 million tonnes in FY23.
- Benzene production reached 2.1 million tonnes in 2023.
- Toluene output in India was 1.2 million tonnes during FY23.
- Xylene production volume hit 1.5 million tonnes in 2023.
- Ammonia production in India was 14.5 million tonnes in FY23.
- Urea production reached 31.2 million tonnes in 2023.
- DAP fertilizer production volume 5.8 million tonnes in FY23.
- MOP production was 2.1 million tonnes in India 2023.
- Paints production volume 4.5 million tonnes in FY23.
- Synthetic rubber production reached 0.25 million tonnes.
- Tyres chemicals output 1.2 million tonnes equivalent in 2023.
- Dyes production in India was 0.9 million tonnes in FY23.
- Pigments production volume 0.12 million tonnes in 2023.
- Agrochem technicals production 0.35 million tonnes FY23.
- Formulated pesticides production 0.6 million tonnes in 2023.
- Surfactants production reached 2.5 million tonnes in FY23.
- Linear alkyl benzene (LAB) output 0.45 million tonnes.
- Ethoxylates production volume 1.1 million tonnes in 2023.
- Soda bi-carb production 0.65 million tonnes FY23.
- Phosphoric acid production 2.2 million tonnes in 2023.
- Sulphuric acid output exceeded 12 million tonnes in FY23.
- Alumina production volume 6.5 million tonnes in 2023.
- Carbon black production reached 1.8 million tonnes FY23.
Production Volume Interpretation
While India's chemical industry is busy fueling everything from our fields to our fashions with mountains of essential molecules, we're still waiting for a compound that makes interpreting this many production statistics any less of an eye-watering endeavor.
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