India’s Chemicals and Petrochemicals Sector Records Strong Growth Over the Last 12 Years

Petrochemicals

India’s chemicals sector and petrochemicals sector have witnessed steady growth over the past 12 years, driven by higher investments, policy support, infrastructure development, and manufacturing expansion, according to the Ministry of Chemicals & Fertilizers.

One of the biggest contributors to this growth has been the country’s three operational Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) in Dahej, Visakhapatnam–Kakinada, and Paradeep. Together, these industrial hubs have attracted investments worth ₹3.4 lakh crore, created 3.7 lakh jobs, and supported the establishment of more than 2,200 chemical manufacturing units.

In a major push for the sector, the Union Cabinet has approved the BHAVYA Rasayan Scheme, which aims to develop three new Chemical Parks on a cluster-based plug-and-play model. Backed by an investment of over ₹3,030 crore, the initiative is expected to strengthen domestic manufacturing, reduce import dependence, and improve India’s competitiveness in the global chemicals market.

Foreign investment has also remained strong. The chemicals sector received ₹1.04 lakh crore in FDI between 2014 and 2026, more than double the inflows recorded during the previous decade. The government’s policy of allowing 100% foreign direct investment under the automatic route in most chemical segments has played a key role in attracting investors.

To improve product quality and safeguard consumers, the department has enforced 37 Quality Control Orders (QCOs) to curb the circulation of substandard products and encourage quality manufacturing.

The government has also expanded support for downstream industries by approving 10 Plastic Parks, four of which have completed infrastructure development. Meanwhile, 18 Centres of Excellence are driving innovation through research, patent filings, and the development of new technologies for the sector.

Skill development has remained another focus area. The Central Institute of Petrochemicals Engineering & Technology (CIPET) has expanded its network to 51 centres across the country and has trained nearly 6.72 lakh professionals, helping build a skilled workforce for the growing industry.

Safety and sustainability have also received attention. Training programmes on the safe handling of hazardous chemicals have already trained more than 2,400 personnel from industrial units. At the same time, awareness campaigns led by government organisations have educated over one lakh farmers on the safe and responsible use of pesticides and integrated pest management practices.

The government said these initiatives are helping strengthen India’s manufacturing ecosystem while supporting employment generation, technological innovation, and the broader vision of Atmanirbhar Bharat and Viksit Bharat @2047.