ndia’s chemical industry is facing mounting pressure to reduce import dependence as the government intensifies its push for domestic manufacturing amid growing geopolitical uncertainty and global supply chain disruptions.
Speaking at the India Speciality Chemicals Conclave organised by ASSOCHAM, Chemicals and Petrochemicals Secretary Tejveer Singh warned that excessive dependence on imported chemical products has become a major strategic concern for the country. He urged the industry to aggressively pursue self-reliance and strengthen domestic manufacturing capabilities to shield India from global trade shocks.
The remarks come at a time when India’s chemical sector is increasingly being squeezed by rising imports, global geopolitical instability, and volatile supply chains linked to the ongoing West Asia crisis. Officials noted that the chemical sector now represents one of India’s largest import burdens after petroleum, with the country’s trade deficit in chemicals widening significantly over the past two decades.
Tejveer Singh revealed that the government is now preparing a new incentive-driven scheme aimed at strengthening India’s domestic chemical and petrochemical manufacturing ecosystem. As part of the strategy, the Centre plans to establish three dedicated chemical parks with a combined outlay of ₹3,000 crore under a cluster-based plug-and-play model to accelerate industrial expansion and reduce import dependency.
Industry leaders were also asked to collaborate with the government in building a long-term strategic roadmap to transform India’s chemical sector into a $1 trillion industry. Officials stressed that technological innovation, local R&D investment, and supply chain resilience would become critical pillars for achieving that target.
The government’s renewed push reflects a broader national trend toward economic self-reliance across strategic sectors. Over the past few months, Indian policymakers have repeatedly called on industries to identify products that can be manufactured locally instead of relying on imports. Commerce Minister Piyush Goyal recently urged businesses to actively track import trends and develop indigenous manufacturing ecosystems under the “Make in India” and “Atmanirbhar Bharat” initiatives.
The urgency has intensified further following repeated global trade disruptions, including energy supply shocks, shipping instability, and growing concerns over strategic dependencies on foreign raw materials. India’s industrial ecosystem remains heavily reliant on imported feedstocks, specialty chemicals, battery materials, fertilizers, and critical intermediates across multiple sectors.
Officials also flagged dumping by competitor nations as an increasing threat to domestic manufacturers, calling for faster policy responses and stronger industrial protection mechanisms. At the same time, the government emphasized that the future competitiveness of India’s chemical sector will depend not only on scale, but also on sustainability, cleaner production methods, and lower fossil fuel dependence.
Industry observers believe the latest push could trigger one of the biggest transitions in India’s chemical manufacturing landscape, particularly as companies look to localize supply chains, reduce exposure to volatile international markets, and capitalize on global diversification trends away from China-centric manufacturing ecosystems.