Published on: July 5, 2025

NITI AAYOG REPORT ON CHEMICAL SECTOR

NITI AAYOG REPORT ON CHEMICAL SECTOR

  • Report Title: “Chemical Industry: Powering India’s Participation in Global Value Chains”, launched by NITI Aayog.
  • Vision: Position India as a global chemical manufacturing powerhouse by 2040 with a $1 trillion industry output.
  • Current Challenges:
    • High trade deficit ($31 billion in 2023).
    • Heavy import dependence for feedstock and specialty chemicals.
    • Infrastructure gaps, high logistics costs, and regulatory delays.
    • Low R&D investment (0.7% vs global avg. 2.3%) and skilled workforce shortage (30%).
  • Targeted Growth:
    • Global Value Chain (GVC) share to grow from 3.5% (2023) to 5-6% by 2040.
    • 7 lakh additional jobs by 2030.
  • Key Interventions:
    • Creation of world-class chemical hubs and port infrastructure.
    • Opex subsidies and R&D funding for innovation.
    • Fast-tracked environmental clearances and FTA facilitation.
    • Skill development via ITIs and industry-academia collaboration.
  • Goal: Achieve net-zero chemical trade and $35–40B export boost by 2030.