NITI Aayog suggests 7 coverage methods to lift India’s share in international chemical compounds consumption to 12% by 2040, ETCFO
India’s chemical compounds business is about for important development, and to assist this, the coverage think-tank of the federal government of India ‘NITI Aayog’ suggests seven key coverage interventions to extend nation’s share within the international chemical compounds worth chain.
NITI Aayog report ‘Powering India’s participation in International Worth Chains’ of July 2025, famous that, as of 2023, India accounts for about 3 to three.5 per cent of the worldwide chemical compounds consumption. The imaginative and prescient is to lift this share to 5-6 per cent by 2030 and additional to 10-12 per cent by 2040.
The report of NITI Aayog acknowledged “A radical analysis was performed to find out the mandatory coverage assist that may allow these prioritized chemical compounds to facilitate the expansion of India’s chemical compounds business”.
It additionally added that India’s presence within the international chemical compounds market is steadily rising, and with robust development drivers in place, the sector presents huge alternatives for growth.
Nevertheless, the report additionally underlined a key problem, it acknowledged that India continues to be a web importer of chemical compounds, with a commerce deficit of round USD 31 billion. This heavy dependence on imports highlights a niche in home manufacturing capability.
To turn into a stronger international participant and cut back its reliance on imports, the nation should deal with strengthening its native manufacturing capabilities.
The report acknowledged that by addressing these gaps, India can transfer in direction of turning into a net-zero importer by 2030, whereas additionally positioning itself as a major contributor to the worldwide market.
To attain this, Niti Aayog has outlined seven strategic areas of coverage assist. It contains growth of infrastructure, similar to upgrading port services particularly for the chemical compounds business.
The second entails monetary interventions like introducing production-linked incentives (Opex subsidies) to assist chemical producers.
The third is selling analysis and growth by establishing a devoted R&D fund for focused improvements.
Fourthly, the Aayog stresses the necessity for expertise and ability upgradation by means of workforce coaching tailor-made to the business’s wants.
Fifth, the report steered strengthening worldwide cooperation by revising free commerce agreements in a manner that advantages the chemical compounds sector.
Sixth, enhancing ease of doing enterprise, this contains simplifying environmental clearance procedures whereas sustaining transparency and accountability.
Lastly, institutional interventions are required to streamline regulatory processes throughout varied authorities departments and companies.
As per NITI Aayog, these seven steps, if applied successfully, may considerably remodel India’s chemical compounds sector and improve its position within the international worth chain.
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