India aims to build a $1 trillion chemicals market by 2040, with government funding, proposed chemical parks and infrastructure development driving investment and industrial growth across the sector.
India has set an ambitious target of developing a chemicals market worth Rs. 95.05 lakh crore (US$ 1 trillion) by 2040. Union Minister for Chemicals and Fertilisers J. P. Nadda announced the goal while inaugurating the 14th edition of India Chem 2026 at the Bombay Exhibition Centre, NESCO, in Mumbai.
The target reflects the country's ambition to strengthen its chemicals and petrochemicals industries, attract investment and expand its position in the global chemicals market.
Addressing the event, Mr. Nadda highlighted the favourable conditions emerging for the sector's development. He pointed to the importance of clear government policies, continued public-sector support and active participation from industry stakeholders.
These factors are expected to create opportunities for new investments, industrial expansion and stronger infrastructure. Collaboration between the government and businesses will be important to achieving India's long-term chemicals market target.
The proposed Bhavya Rasayan scheme is a key initiative aimed at supporting the development of chemical parks in India. The funding framework outlined at the event seeks contributions from both the Central Government and the respective state governments.
Under the proposed scheme, the Central Government would provide Rs. 1,000 crore (US$ 105.21 million) for each chemical park. The concerned state government would contribute a minimum of Rs. 500 crore (US$ 52.60 million).
This funding structure is intended to encourage state participation in developing facilities that can support the chemicals industry. The proposed parks could create opportunities for industrial investment and help strengthen the infrastructure required for chemical manufacturing.
The availability of reliable transportation and logistics infrastructure will be an important consideration in selecting and developing chemical parks.
According to the announcement, access to ports, railways, airports and road networks will be crucial to the parks' selection and success. Strong connectivity can help industrial facilities move raw materials and finished products more efficiently, supporting manufacturing operations and trade.
The emphasis on infrastructure highlights the importance of integrating chemical production facilities with broader transport and logistics networks.
Maharashtra Chief Minister Devendra Fadnavis highlighted the potential of the chemicals industry to contribute to the state's broader economic ambitions.
The state aims to become a Rs. 95.05 lakh crore (US$ 1 trillion) economy. Mr. Fadnavis noted that the chemicals sector already provides employment to approximately three lakh people in Maharashtra.
The existing workforce demonstrates the industry's role in Maharashtra's industrial economy. Further investment and expansion could create additional opportunities for businesses and workers, while supporting the state's efforts to increase economic activity.
The development of chemical parks and improved infrastructure may also help strengthen the state's industrial ecosystem, provided the proposed initiatives translate into projects and employment opportunities.
Union Minister of State for Chemicals and Fertilisers, and Health and Family Welfare, Anupriya Patel reiterated the Central Government's commitment to supporting the sector's growth.
She highlighted the importance of policy support, simplified regulatory processes and infrastructure development in enabling industrial expansion.
A supportive policy environment can help businesses plan investments and manage regulatory requirements more effectively. Streamlined regulations and improved infrastructure are also important for strengthening the industry's ability to attract investment and expand production.
The government's stated priorities align with India's broader ambition to develop a more competitive chemicals and petrochemicals sector and increase its contribution to the economy.
The 14th edition of India Chem 2026 is being held under the theme “Advantage Bharat: An Emerging Global Chemicals Hub.” The three-day event is scheduled to conclude on Saturday.
The event brings attention to India's ambitions in the chemicals and petrochemicals industries, including investment opportunities, industrial infrastructure and government-industry cooperation.
The announcements made during the inauguration underline the role of coordinated policy measures, state participation and infrastructure development in supporting the sector's long-term expansion.
Conclusion
India's target of building a US$ 1 trillion chemicals market by 2040 highlights the government's ambition to expand the industry and strengthen its global position. The proposed Bhavya Rasayan scheme, shared funding for chemical parks and focus on connectivity could help create conditions for future investment. Continued policy support and cooperation between the Centre, states and industry will be important to turning these ambitions into sustainable industrial growth.