Madhumitha Jaganmohan
Research expert covering climate and environmental sustainability
Chemical industry in India - statistics & facts
The Indian chemical industry is one of the largest worldwide. In 2023, it ranked fifth in the world in terms of revenue. With over 80 thousand products, it is also one of the most diversified sectors in the country. Furthermore, it provides raw materials to many end-use industries and acts as a backbone in the development process of the nation. From financial years 2016 to 2020, foreign investment in the Indian chemical sector was over one billion U.S. dollars per year, although this value decreased slightly in 2021, 2022 and 2024.
Specialty chemicals are derived from base chemicals and are also known as performance chemicals. These include paints, adhesives, agrochemicals, surfactants, water treatment chemicals, flavors, and fragrances, to name a few. The consumption volume of these chemicals is lower in comparison to base chemicals as they are used based on application. This sector is expected to grow in the future based on increased local demand, higher export share, and supportive government policies.
Base and specialty chemicals in India
Chemical products can be broadly classified into base and specialty chemicals. The vast majority of chemicals manufactured in India are base chemicals. In financial year 2023, the production volume of basic major chemicals and petrochemicals in the country reached some 31.1 million metric tons. Base chemicals are also known as bulk chemicals, as they are manufactured on a large scale and used as intermediates to produce other chemicals.Specialty chemicals are derived from base chemicals and are also known as performance chemicals. These include paints, adhesives, agrochemicals, surfactants, water treatment chemicals, flavors, and fragrances, to name a few. The consumption volume of these chemicals is lower in comparison to base chemicals as they are used based on application. This sector is expected to grow in the future based on increased local demand, higher export share, and supportive government policies.
Indian agrochemical industry
Chemicals used for the protection of agricultural harvest from insects and pests are classified as agrochemicals. This comprises various insecticides, pesticides, and herbicides. The south Asian country was one of the leading agrochemical producers in the world. Furthermore, agrochemicals account for almost 30 percent of the specialty chemicals industry in India, the largest segment within the sector. Exports of agrochemicals in the country reached 384 thousand metric tons in financial year 2021. United Phosphorous Limited (UPL), one of the major players in the sector, was among the leading agrochemical companies in the world.
