Sector Snapshot · Chemicals & Petrochemicals

India's Chemicals Industry Targets a Trillion-Dollar Future

A fast-read primer on India's chemicals and petrochemicals sector — the backdrop against which we benchmark every company's cost structure in this category.

US$300 bn

Projected chemical sector size by 2028

US$1 trillion

Projected demand by 2040

Chemicals' contribution to India's GDP

6th

India's global rank as chemical producer

US$18.65 bn

Chemicals & allied exports, FY26 (Apr-Feb)

Market Size Is on a Clear Growth Path

The industry has grown every year this decade, with specialty chemicals leading the next leg.

Chemical Industry Market Size (US$ billion)

FY19 → FY24 → FY28 forecast

$178.0bn

FY19

$278.1bn

FY24

$300.0bn

FY28F

Revenue Share by Segment, FY22

SME vs. Non-SME

Non-SME — 70%

SME — 30%

What's Pushing the Sector Forward

Global scale, specialty growth, and policy support are reinforcing each other.

Global Scale

6th-largest chemical producer globally, 3rd in Asia
Covers more than 80,000 commercial products

Specialty Growth

Specialty chemicals market to grow from US$64.5bn (2024) to US$92.6bn by 2033
Agrochemical exports projected to exceed Rs80,000cr by 2028

Policy & Investment

FDI inflows of Rs1,48,744cr (US$23.9bn) since April 2000
PLI schemes support Bulk Drug Parks and battery storage chemistry

Recent Developments

A sample of the industry-wide and policy moves shaping the sector through early 2026.

→ India's chemical sector is targeted to reach US$300 billion by 2028.
→ Chemicals and allied product exports reached Rs 1,64,850 crore (US$18.65bn) in FY26 (Apr-Feb).
→ India delivered a five-year total shareholder return of 28% in chemicals (2020-2024), well above the 7% global average.
→ Odisha is targeting Rs 1.2 trillion (US$13.6bn) in petrochemical hub investment by 2035.
→ The Dahej PCPIR project has attracted ~Rs 1 lakh crore in investment, expected to generate 32,000 jobs.
→ India's green chemicals market is expected to grow at over 10% CAGR, exceeding US$15bn by 2027.

Companies We Benchmark in This Sector

Listed Indian Chemicals & Petrochemicals companies in tDoBe's cost-benchmarking coverage.

Solar Industries India

Pidilite Industries

SRF

Linde India

Gujarat Fluorochemicals

Himadri Speciality Chemical

Navin Fluorine International

Deepak Nitrite

Deepak Fertilisers & Petrochemicals

Atul

Aether Industries

Tata Chemicals

Aarti Industries

BASF India

Fine Organic Industries

Supreme Petrochem

Privi Speciality Chemicals

Anupam Rasayan India

See How These Companies Compare on Cost

The numbers above set the stage. Our Report translates it into a company-by-company cost benchmark — down to the category — so you can see exactly where a business sits against its peers.

Explore the Chemicals & Petrochemicals Report