Lok Sabha Question No. 1045 (UNSTARRED), answered on 2025-07-25
Subject: Upgradation of Chemical Industry
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri K E Prakash

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS AND FERTILIZERS

## DEPARTMENT OF CHEMICALS AND PETROCHEMICALS

## LOK SABHA UNSTARRED QUESTION No. 1045

ANSWERED ON- 25/07/2025

## UPGRADATION OF CHEMICAL INDUSTRY

## 1045 SHRI. K E PRAKASH:

## Will the MINISTER OF CHEMICALS AND FERTILIZERS  be pleased to state:

(a) the  reasons  for  the  continued  import  dependency  in  the  chemical  industry  despite India's stated potential to emerge as a global leader in the sector; and

(b) the  specific  initiatives  undertaken  by  the  Government  to  promote  research  and development (R&D)  support, global value chain integration support, technological upgradation, and process efficiency in the chemical industry of the country, particularly for Micro, Small and Medium Enterprises (MSMEs), to reduce such dependency and enhance global competitiveness?

## ANSWER

## THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS

## (SMT. ANUPRIYA PATEL)

- (a) The reasons for continued import dependency in the chemical sector are:
- a. Feedstock and raw material constraints.
- b. Technology and innovation gap.

(b) The Government  has taken following measures  to promote research and development (R&D)  support, global value chain integration support, technological upgradation,  and  process  efficiency  in  the  Chemical  industry  of  the  country,  including MSMEs:

## 1. Centre of Excellences (CoEs):

With the objective of promoting research and development efforts in the chemical and petrochemical  sector  to  develop  new  molecules  and  technologies, the  Department  has formulated a scheme for setting up of Centres of Excellence. The objective is to provide Grants-in-Aid to educational and research institutions to improve existing technology and promote  development  of  new  applications  of  polymers,  chemicals  and  plastics.  The emphasis  of  the  Scheme  is  on  modernisation  and  upgradation  of  existing  manufacturing processes as well as improving the quality of products. Under the scheme, the Government of India provides  financial  support  upto  50  per  cent  of  the  total  project  cost  subject  to

upper limit of Rs. 5 crores. So far, 18 CoEs have been approved under the  Scheme. The CoEs are undertaking pioneering research in their chosen fields. These CoEs includes IITs, CSIR Laboratories, CIPET etc.

## 2. Council of Scientific and industrial Research (CSIR)

Council  of  Scientific  and  Industrial  Research  (CSIR),  through  its  six  constituent laboratories, is playing a key role in strengthening India's Chemical industry by supporting R&D, technological upgradation, and process efficiency. It actively engages with start-ups and  MSMEs by offering  technical  support.  CSIR  has  developed  several  import-reducing technologies, including those for medical-grade oxygen, biodiesel, renewable bio-methane, and eco-friendly processing systems. It is also undertaking research initiatives in the fields of specialty chemicals, battery recycling, corrosion protection, and crop protection technologies, while exploring AI-driven industrial solutions and carbon capture technologies.  CSIR  also  conducts  regular  workshops  and  outreach  programs  to  connect with industry stakeholders and address key challenges like climate change, energy security, and supply chain disruptions.

## 3. Department of Biotechnology:

The Department of Biotechnology has introduced the BioE3 Policy (Biotechnology for Economy, Environment & Employment) to promote high- performance bio-manufacturing. As  part  of  this  initiative,  the  Department  has  called  for  Proposals  to  support  R&D  in sustainable  bio-manufacturing  within  the  chemical  sector.  The  call  focuses  on  biomanufacturing of bio-based chemicals,  biopolymers, and active pharmaceutical ingredients (APIs)  using  production  strains,  and  encourages  participation  from  academia,  start-ups, industry,  and  collaborative  partnerships  between  these  stakeholders.  Proposals  have  been invited  with the goal of advancing innovation and commercialization in the sector.

## 4. Ministry of MSME:

The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSMEs)  runs  several schemes  and  programs  aimed  at  boosting  research  and  development  (R&D),  integrating MSMEs into global value chains, encouraging technological advancement, and enhancing process efficiency, especially within the chemical sector.

As part of the MSME Champions Scheme, 3 key components are:

- MSME  Innovative  (Incubation, Design &IPR)  Scheme: Supports  R&D  and innovation.
- MSME  Competitive  (LEAN)  Manufacturing  Scheme:  Promotes  productivity  and quality  improvements  through  lean  practices  (eliminating  waste  and  maximizing value).
- MSME  Sustainable  (ZED)  Zero  Effect Zero Defect -Certification  Scheme: Encourages sustainable manufacturing and quality enhancement.

Additionally, the Ministry is implementing:

- MSE Scheme for Promotion and Investment in Circular Economy (MSE- SPICE): Supports initiatives aligned with the circular economy.
- Micro  and  Small  Enterprises  -  Growth  Innovation  and  Technology  (MSEGIFT)  Scheme:  Aims  to  drive  technological  upgrades  and  improve  process efficiency in MSMEs, including those operating in the chemical industry.