Lok Sabha Question No. 2469 (UNSTARRED), answered on 2026-02-13
Subject: Actual Growth  in the Chemicals and Petrochemicals Sector
Ministry: CHEMICALS AND FERTILIZERS
Asked by: Shri Karti P Chidambaram

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF CHEMICALS & PETROCHEMICALS

## LOK SABHA

## UNSTARRED QUESTION NO.  2469

ANSWERED ON 13/02/2026

## ACTUAL GROWTH IN THE CHEMICALS AND PETROCHEMICALS SECTOR

2469.  SHRI KARTI P CHIDAMBARAM:

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:

- (a) the actual market size of the Indian chemicals and petrochemicals sector as on end2025;
- (b) whether the projected target of USD 300 billion by 2025 has been achieved, if so, the details thereof; and if not, the reasons therefor including constraints related to investments, infrastructure, policy implementation, or the global market conditions;
- (c) the extent of growth in demand and production capacity recorded during the said period vis-a-vis earlier projections; and
- (d) the strategy and the policy measures being pursued to achieve the long-term target of USD 1 trillion by 2040?

## ANSWER

THE MINISTER OF STATE FOR CHEMICALS & FERTILIZERS

(SMT. ANUPRIYA PATEL) )

- (a)  to (d): The  output  for  Chemicals and Petrochemicals as per the Annual Survey of Industries (ASI) done by the Ministry of Statistics & Programme Implementation for last fiveyears, is given in the table below.  It may please be noted that the Survey of Industries (ASI) for Financial Year 2024-25 has not been published yet.

| The output for Chemicals &Petrochemicals in Rs. Crore   | The output for Chemicals &Petrochemicals in Rs. Crore   | The output for Chemicals &Petrochemicals in Rs. Crore   | The output for Chemicals &Petrochemicals in Rs. Crore   | The output for Chemicals &Petrochemicals in Rs. Crore   | The output for Chemicals &Petrochemicals in Rs. Crore   |
|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
| Year                                                    | 2019-20                                                 | 2020-21                                                 | 2021-22                                                 | 2022-23                                                 | 2023-24                                                 |
| Total Output                                            | 11,99,309                                               | 11,91,354                                               | 16,03,219                                               | 19,32,057                                               | 18,71,943                                               |

The Chemical sector is largely delicensed except for a group of three hazardous chemicals. The sector  offers  substantial  opportunities  for  growth,  diversification  as  it  also  feeds  several downstream  industries  such  as  Agriculture,  Fertilizers,  Pharmaceuticals,  Nutraceuticals, Electronics,  Semiconductors,  Textiles,  Automobiles,  Consumer  goods,  Construction  sector, etc.

As per the Foreign Direct Investment Policy, 100% FDI under the automatic route is allowed in  the  chemicals  and  petrochemicals  sector  for  both  manufacturing  and  trading  activities, thereby facilitating investments in the sector.  From April 2000 to September 2025, cumulative FDI equity inflows for the Chemicals sector is INR 1,47,453.93 crore, accounting for 3.11% of total FDI equity inflows into the country. The details of last five years are as under:

| Financial Year (April-March)   | FDI Equity Inflow from CHEMICALS (OTHER THAN FERTILIZERS) Sector   | FDI Equity Inflow from CHEMICALS (OTHER THAN FERTILIZERS) Sector   |
|--------------------------------|--------------------------------------------------------------------|--------------------------------------------------------------------|
|                                | (In INR Crore)                                                     | (In USD Million)                                                   |
| (1)                            | (2)                                                                | (3)                                                                |
| 2020-21                        | 6,300.21                                                           | 847.07                                                             |
| 2021-22                        | 7,202.22                                                           | 965.78                                                             |
| 2022-23                        | 14,662.04                                                          | 1,850.01                                                           |
| 2023-24                        | 6,985.32                                                           | 843.97                                                             |
| 2024-25                        | 8,943.45                                                           | 1,060.56                                                           |
| 2025-26 (Up to September 2025) | 4,598.19                                                           | 534.12                                                             |

Further, Department of Chemicals and Petrochemicals has been taking various measures to support the sector. The measures are as follows:

Petroleum,  Chemicals  and  Petrochemicals  Investment  Regions  (PCPIR): To  attract investments in chemicals & petrochemicals sector, Department had notified the Petroleum, Chemicals and Petrochemical Investment Region (PCPIR) Policy. PCPIRs are conceptualized as  cluster-based  model  of  Development  with  common  infrastructure  and  support  services. Three  PCPIRs  have  been  set  up  at  Dahej  (Gujarat),  Vishakhapatnam-Kakinada  (Andhra Pradesh)  and  Paradeep  (Odisha).  Currently,  2,246  chemical  units  are  functional  in  these PCPIRs having a cumulative investment of Rs. 3,49,192 crore and these regions have generated employment of 3.7 lakh persons.

Plastic Parks: The Department  has implemented the Scheme for Setting up of Plastic Parks. The Scheme promotes setting up of need-based Plastic Parks with requisite state-of-the-art infrastructure and enabling common facilities. The objective is to consolidate and synergize the  capacities  of  downstream  plastic  processing  industry  to  help  increase  investment, production and export in the sector as well as generate employment. Under the Scheme, the Government  of  India  provides  grant  funding  up  to  50%  of  the  project  cost  to  the  State government subject to a ceiling of Rs. 40 crore per project. In accordance with the Scheme Guidelines, 9 Plastic Parks have been approved so far and the same are at different levels of implementation.

Free Trade Agreements: Further, various Comprehensive Economic Partnership Agreements (CEPAs) and other Free trade agreements with different countries and regional groupings have been  negotiated by the Government in the recent years to promote greater integration of the sector with the global value chains. These countries / regional blocks include Oman, the United Kingdom, the United Arab Emirates, European Free Trade Association and Australia.

In  addition  to  these  infrastructure-led  initiatives,  the  Department  has  also  undertaken  the following initiatives aimed at research and development, technology upgradation, and human resource development, to promote the sector.

Centre of Excellence: The Department of Chemicals and Petrochemicals has formulated a scheme on setting up of Centres of Excellence. The objective is to provide grant-in-aid to educational and research institutions to improve existing technology and promote development of new applications of polymers and plastics. The emphasis of the Scheme is on modernization and  upgradation  of  existing  manufacturing  processes  as  well  as  improving  the  quality  of products. Under the scheme, the Government of India provides financial support up to 50 per cent of the total project cost subject to an upper limit of Rs. 5 crores. So far, 18 CoEs have been approved under the Scheme. Earlier, the CoE scheme was only available for petrochemical sector. Now, the revised scheme includes chemicals sector also.

Skilling and Human Resource Development through CIPET: The Central Institute of Petrochemicals Engineering & Technology (CIPET) is a technical education institution under the  Department of Chemicals & Petrochemicals, engaged in skill development, technology support, as well as academic and research activities for the promotion of the petrochemical and allied industry in the country. CIPET has 48 centers across the country. During 2024-25, CIPET provided training to 75,763 persons and during 2025-26 (till 15.01.2026), 46,381 persons have been imparted skill training.

*****