What is India's target for its chemical industry by 2040, and what does the current size and growth requirement imply?

India aims to grow its chemical industry to $1 trillion by 2040, up from its current size of approximately $250 billion, which accounts for about 3% of global market share. To achieve this, the industry must sustain a compound annual growth rate (CAGR) of over 9%, and increase its global market share to 10–12%.

What are the three main structural challenges hindering India's chemical industry from reaching its $1 trillion goal, according to the news?

The three core challenges are: (1) infrastructure bottlenecks, high financing costs, trade protectionism, and insufficient R&D capacity; (2) policy uncertainty—including inconsistent BIS certification adjustments and expiring tariff exemptions—that undermines investor confidence; and (3) a technological gap and talent shortage, especially in high-value segments like specialty chemicals, electronic chemicals, and catalysts, where India remains heavily import-dependent.

India Targets $1 Trillion Chemical Industry by 2040

Aug 28, 2026

India targets a $1 trillion chemical industry by 2040, backed by government policies on industrial parks and tax incentives. Despite support from global majors like BASF and Dow, challenges persist regarding infrastructure, technology gaps, and policy continuity.

ccin

2026-08-28

India Targets $1 Trillion Chemical Industry by 2040

India Targets $1 Trillion Chemical Industry by 2040

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