en.Wedoany.com Reported - India's NITI Aayog released a report stating that the Indian chemical industry can set an export target of $76 billion to $81 billion by 2030 to expand domestic production, reduce import dependence, and strive for net-zero imports.

The report shows that the chemical industry plans to achieve exports of $45 billion in specialty chemicals, $5-10 billion in inorganic chemicals, and $26 billion in petrochemicals by 2030. These targets aim to enhance India's participation in the global chemical value chain and consolidate its position as a major chemical producer and exporter.

To achieve this goal, India's chemical industry needs to maintain a compound annual growth rate (CAGR) of 10% to 11% on the consumption side and 14% on the production side over the next five fiscal years. The report projects that by fiscal year 2030, India's chemical market consumption will reach $290 billion to $310 billion, accounting for approximately 5% to 6% of global chemical consumption.

The report notes that India needs to significantly expand domestic capacity to meet sustained demand growth, thereby reducing reliance on imports. It is estimated that India's chemical output value needs to double from approximately $110 billion in fiscal year 2023 to $220 billion to $280 billion by fiscal year 2030. The industry is also expected to create 700,000 to 1 million new jobs by the end of this decade.

In terms of export growth, dyes and pigments, paints and coatings, agrochemicals, and flavors and fragrances are identified as key areas driving specialty chemical exports. The report states that India's specialty chemicals have shown growth momentum in major markets, with exports to the United States and Brazil accounting for 17% and 16% of total exports, respectively, in 2024. However, India's share in major global import markets is only around 8%, leaving significant room for export expansion.

The report believes that India's chemical industry has favorable conditions such as growing domestic demand, government policy support, and strong manufacturing capabilities, but also faces challenges including infrastructure gaps, regulatory hurdles, and the need for technological advancement. To this end, the report recommends moving India up the chemical value chain through targeted investments, policy interventions, and an innovation-driven industrial ecosystem to achieve the 2030 export targets.