India is positioning chemicals as a strategic industry tied to batteries, semiconductors and advanced production, with a $1 trillion target by 2040. At India Chem 2026, the government driven chemical parks, R&D guidance and policy alignment to lift competitiveness and attract investment.
India is trying to turn chemicals from a helping industry into a strategic development pillar, with the government now clearly connecting the sector to batteries, semiconductors and advanced production. At the release of India Chem 2026 in New Delhi, the Centre outlined an ambition that goes well beyond capacity addition: a $1 trillion chemicals industry via 2040 and a more active role for India in worldwide supply chains.
As per to Indian Chemical News, Union minister of state for chemicals and fertilisers Anupriya Patel mention that the country’s next phase of industrial policy ought to align infrastructure, research and investment if India is to become a serious contender in speciality, battery and semiconductor chemicals. The wider message was clear: the chemicals sector is no longer being treated as a standalone production story, however as a platform for technology-led industrial expansion.
From production base to strategic supply chain link
Patel framed the sector’s future around India’s ability to serve several high-value industries at once. In her remarks, she linked chemicals policy to the Critical Mineral Mission, the Rare Earth Corridor, India Semiconductor Mission 2.0, the National Manufacturing Mission and foreign direct investment reforms. The purpose, she stated, is to position India as a worldwide centre for battery chemicals, speciality chemicals and semiconductor chemicals by 2040.
That ambition matters as these segments sit on the intersection of energy storage, electronics and industrial competitiveness. Battery-grade inputs are an increasingly central to electric mobility and grid storage, at the same time as semiconductor chemicals are vital for chip fabrication and related supply chains. If India can construct scale in these categories, the sector could move from import reliance to export relevance in select niches.
BHAVYA Rasayan Scheme receives an innovation test
A key policy lever discussed at the event was the BHAVYA Rasayan Scheme, which Patel said must evolve from a pure infrastructure programme right into a mechanism that drives innovation and investment. The scheme’s guidelines have already been launched, and the minister urged industry players to work with state governments so proposals can be filed without delay.
The highlight on chemical parks is considerable as industrial clusters often determine whether or not India can cut logistics charges, improve utilities access and attract to anchor investors. For a sector that competes on process performance and scale, plug-and-play infrastructure can be as essential as tax incentives. The government’s pitch is that well-designed parks could lower entry boundaries for new ventures and support manufacturers expand faster.
R&D spending moves to the centre of the policy debate
Patel also pressed companies to raise spending on research and development and adopt newer technologies. The Department of Chemicals and Petrochemicals is operating with the Department of Science and Technology to have chemicals and petrochemicals known as a priority sector under the new Research Development Innovation scheme, which has an outlay of approximately ₹1 lakh crore.
That move is remarkable as it indicates a shift in how the government need to support industrial upgrading. Rather than of limiting policy guidance to land, utilities and approvals, the Centre is trying to link the sector to a bigger innovation framework. If chemicals firms can get access to a bigger share of public R&D support, the hope is that India can build more proprietary procedures, speciality formulations and higher-margin products instead of stay focused in commodity output.
Officials say value competitiveness is the next frontier
Tejveer Singh, secretary in the Department of Chemicals and Petrochemicals, defined chemicals as the foundation of India’s economic growth and development. He stated the proposed parks beneath the BHAVYA Rasayan Scheme are close to turning into reality and are anticipated to provide shared infrastructure that can improve efficiency and decrease manufacturing expenses.
Singh also pointed to sustained R&D funding as a prerequisite for innovation and global competitiveness. Apart, he mention that the department is operating with the Department for Promotion of Industry and Internal Trade on import-substitution exercises across the chemicals and petrochemicals space. That suggests the policy target is not only on exports, but also on replacing imported intermediates and decrease vulnerability in critical value chains.
Industry wants scale, capital and partnerships
Deepankar Aron, joint secretary within the Department of Chemicals and Petrochemicals, stated the 14th edition of India Chem is designed to attract investment and create business-to-business (B2B) partnerships across the sector. The government-backed platform is getting used as both a policy signal and a market-making exercise, bringing together manufacturers, investors and technology stakeholders under one roof.
Industry representatives used the occasion to highlight the requirement for scale. Prabh Das, chairman of the FICCI National Petrochemicals and Plastics Committee and managing director and chief govt executive officer of HPCL-Mittal Energy Ltd, stated India must boost manufacturing and that the authorities is backing that effort. S Ganeshkumar, co-chair of the FICCI Chemicals Committee and managing director of Chemplast Sanmar Ltd, said the sector can absorb big capital, appeal to foreign direct investment and rise as one of the world’s most attractive chemical markets.
The comments shows a broader industry outcome that India’s chemical opportunity will rely upon whether or not huge ventures can be financed and completed at speed. Global investors increasingly search for stable policy, predictable approvals and cluster-based infrastructure before committing to new capacity. India’s challenge is to transform a big domestic market into a globally competitive production base.
Why the 2040 goal matters for India’s industrial policy
The $1 trillion focus is ambitious even by the standards of India’s current production rhetoric. But it also suits a wider national approach: using chemicals as an permitting sector for electric mobility, electronics, clean energy and advanced materials. If the country can construct functionality in speciality chemicals, battery inputs and semiconductor-grade materials, the gains could extend far beyond the sector itself.
There is also a geopolitical dimension. Supply chain diversification has turn out to be a priority for multinational buyers looking beyond a narrow set of Asian hubs. India is trying to place itself as an alternative source of scale, talent and policy stability. The success of that effort will rely on whether or not industrial parks, R&D incentives and investment reforms arrive fast enough to match market demand.
India Chem 2026 as a platform for the next phase
India Chem 2026, organised by the Department of Chemicals and Petrochemicals with the Federation of Indian Chambers of Commerce and Industry, will run in Mumbai from October 22 to 24. The 3-day event will include an global exhibition and conference,along with sector-particular discussions on agrochemicals, petrochemicals and speciality chemicals.
It can also host sessions on infrastructure, environmental problems, process technology, plant and machinery, and region-focused forums on India-US, India-EU, India-Russia and India-Japan cooperation. The event theme, “Advantage Bharat: An Emerging Global Hub”, captures the government’s broader message: India wants the chemicals industry to be not simply larger, however more technologically relevant and globally linked.
Whether that ambition converts into a $1 trillion sector by 2040 will rely upon execution. The policy direction is now visible, and the industry has been told where the government wants to go. The harder task is constructing the parks, funding the research and attracting the capital requirements to get there.
