Chemicals & Petrochemicals

The Government notified the Petroleum, Chemical and Petrochemical Investment Region (PCPIR) Policy in 2007 to develop large clusters with common infrastructure. The Dahej PCPIR in Gujarat and the Visakhapatnam–Kakinada PCPIR in Andhra Pradesh were approved in February 2009, and the Paradeep PCPIR in Odisha in December 2010. Under DCPC's Plastic Parks scheme, the first parks, at Tamot in Madhya Pradesh and Jagatsinghpur in Odisha, were approved in 2013. In 2015-16, production of selected major chemicals and petrochemicals stood at 45,638 thousand tonnes.

Production of selected major chemicals and petrochemicals reached 58,617 thousand tonnes in 2024-25, the highest in DCPC's series since 2015-16, after dips in 2020-21 and 2022-23. Within the series, major chemicals rose from 10,234 thousand tonnes in 2016-17 to 12,979 in 2023-24, and major petrochemicals from 15,510 to 19,028. Exports of chemicals and chemical products, excluding pharmaceuticals and fertilisers, grew from ₹1,90,193 crore in 2016-17 to ₹3,81,306 crore in 2022-23, the highest year in DCPC's 2016-17 to 2023-24 table. FDI equity inflow into the sector was USD 1,060 million in 2024-25, up 25.59% on the year before.

DCPC compiles installed capacity and production from monthly production reports filed by large and medium units, and trade figures from DGCIS. Its online ChemIndia portal, which succeeded a manual system covering 197 products, had 835 registered units and 3,160 mapped products in 2024-25. Under the Plastic Parks scheme the Centre gives grants of up to 50% of project cost, capped at ₹40 crore per park, while State agencies build the parks and bring in industrial units. DCPC has notified 43 Quality Control Orders making BIS standards mandatory for chemicals, and DGFT extended the export obligation period under Advance Authorisation from 6 to 18 months for products covered by them.

The Union Budget 2026-27 introduced a scheme to help States set up three dedicated Chemical Parks through challenge-based selection, with ₹600 crore in the 2026-27 budget estimates, described as the first dedicated budgetary support for chemical park infrastructure. DCPC has also withdrawn QCOs on several key chemicals, rescinding 14 on 12 November 2025, including those on terephthalic acid, ethylene glycol, polyethylene, polypropylene and PVC. Imports still exceed exports: in 2023-24 imports of chemicals and chemical products, excluding pharmaceuticals and fertilisers, were ₹6,00,378 crore, against exports of ₹3,73,285 crore. DCPC's statistics, citing UN Comtrade, ranked India 11th in world chemical exports and 4th in imports in 2023.

45,638 → 58,617 thousand tonnes of selected major chemicals and petrochemicals (2015-16 → 2024-25). 8.1% of manufacturing GVA (2023-24). ₹3,73,285 crore exports and ₹6,00,378 crore imports of chemicals and chemical products, excluding pharmaceuticals and fertilisers (2023-24). 3 PCPIRs with 2,246 units and ₹3,40,538 crore invested; 10 Plastic Parks approved; ₹600 crore for three Chemical Parks (BE 2026-27). Sources: Department of Chemicals & Petrochemicals (Chemical and Petrochemical Statistics at a Glance 2023, 2024 and 2025; Year-End Reviews 2024 and 2025, via PIB); Economic Survey 2025-26; PIB backgrounders on Plastic Parks (April 2025) and Chemical Parks (February 2026); Trade Connect (Department of Commerce).