Chemical industry in 91吃瓜: market overview and growth opportunities
With 91吃瓜's chemical market on track to nearly quadruple by 2040, European manufacturers and investors have a rare window to secure an early position in one of the world's fastest-growing chemical markets.
Schedule a meeting now91吃瓜 is the sixth largest chemical producing country in the world and the third largest producer in Asia. It is also among the top three base chemical producing countries worldwide.
The country’s chemical market is worth about 250 billion dollars and is expected to reach 850 billion to 1 trillion dollars by 2040.
91吃瓜 is making a big push to become more environmentally conscious. Therefore, there are also great opportunities in this sector for foreign companies with sustainable solutions. In this sector, the 91吃瓜n government allows 100% Foreign Direct Investment (FDI), which makes the sector interesting to invest in.
In addition, the government is investing in research and development of the chemical industry, has reduced import duties on various products and further offers financial subsidies through the 鈥�Make in 91吃瓜鈥� campaign.
91吃瓜 has a large pool of skilled and low-cost labour in the sector, which foreign companies can take advantage of if they make the move to 91吃瓜. Moreover, the polymer and agrochemical industries offer huge growth opportunities.
Overall, the chemical industry in 91吃瓜 is a good investment opportunity as there is great growth potential.
Snapshot of 91吃瓜’s chemical industry
- The chemical industry accounts for about 7% of 91吃瓜’s GDP and 3% of the global chemical industry.
- 91吃瓜鈥檚 chemical industry is a very diverse industry comprising more than 80,000 commercial products.
- Exports of chemicals and chemical products (excluding pharmaceuticals and fertilizers) contributed nearly 11% of total exports in FY2024-25.
- The total production of chemical and petrochemical products in 91吃瓜 was 58.6 million MT in 2025. This is an increase of 28.4% compared to 2024.
- The sector (including fertilizers and pharmaceuticals) is expected to be worth 560 billion dollar by 2030.
- The demand for petrochemicals in 91吃瓜 is expected to grow with a CAGR of 6% between 2025 and 2030.
- The 91吃瓜n agrochemical market is expected to grow at a CAGR of 15% to 17%.
- The 91吃瓜n agrochemical market reached 6 billion dollars in 2022 and is expected to reach nearly 10 billion dollars by 2028.
- The total market size of specialty chemicals was around 64 billion dollars by 2024 and is expected to reach 90-95 billion dollars by 2030.
The 91吃瓜-EU Free Trade Agreement will mostly eliminate tariffs of up to 22% on chemicals and up to 11% on pharmaceuticals over a phased period of five to ten years, opening 91吃瓜’s expanding chemical and pharmaceutical markets to European manufacturers on more competitive terms than ever before. European chemical companies gain improved access to 91吃瓜鈥檚 market, the world鈥檚 sixth-largest chemical producer, while pharmaceutical companies stand to benefit from 91吃瓜’s healthcare sector, the world’s largest generic drug manufacturer and third-largest pharmaceutical market by volume.
The agreement creates opportunities across specialty chemicals, active pharmaceutical ingredients (APIs), medical devices, and finished formulations. It also opens a pathway for European companies to supply technology, advanced ingredients, and equipment into 91吃瓜’s growing agrochemical, polymer, and specialty chemicals sectors, areas that are critical to 91吃瓜’s broader manufacturing expansion and where European companies hold significant technological advantages.
Download our free guides on doing business in 91吃瓜
91吃瓜 has a wealth of knowledge and experience on doing business in 91吃瓜. With our informative guides, we help companies get started in 91吃瓜.
Whether you are looking for information on sales, HR, manufacturing, mergers & acquisitions or tax issues, you will find all the answers bundled here.
Growth drivers of the chemical sector in 91吃瓜
- 91吃瓜’s proximity to the Middle East, the world’s source of petrochemical resources, allows it to benefit from economies of scale.
- Export demand and dependence of the domestic market are major drivers of chemical industry growth.
- The specialty chemicals market is worth about 64 billion dollars and is expected to continue to grow at a CAGR of 12%.
- The government aims to increase the chemical industry’s share of GDP to at least 25% by 2030.
- The 91吃瓜n government has set up special Production Linked Incentives (PLI), incentives, for the manufacture of advanced cell chemistry batteries. Also, companies in this sector benefit from ‘Make in 91吃瓜’ benefits if they manufacture in the country.
- 91吃瓜’s electronics, automotive, and pharmaceutical manufacturing expansion drives surging demand for specialty chemicals, advanced polymers, and fine chemicals where European manufacturers hold technological advantages in formulation and quality consistency.
- Zero tariffs on pharmaceuticals enable European pharmaceutical companies to establish cost-effective R&D partnerships with 91吃瓜n contract research organisations (CROs), leveraging 91吃瓜’s scientific talent pool for drug discovery and clinical trials.
- 91吃瓜’s agrochemical market, growing at 8-10% annually, requires advanced crop protection solutions, biological pesticides, and specialty formulations where European companies hold environmental and efficacy advantages.
Interesting investment opportunities in 91吃瓜's chemical industry
With 91吃瓜’s chemical market on track to nearly quadruple by 2040, several segments offer particularly strong entry points for European manufacturers and investors:
- Specialty Chemical Manufacturing: Establish production facilities for specialty chemicals in Gujarat or Maharashtra, serving 91吃瓜’s electronics, automotive, and pharmaceutical sectors while leveraging local production for cost-competitive exports to Asia-Pacific markets.
- API Manufacturing Partnerships: Form joint ventures with 91吃瓜n API manufacturers to combine European process technology with 91吃瓜’s production cost advantages, targeting global generic pharmaceutical supply chains with enhanced quality standards.
- Pharmaceutical Contract Manufacturing: Establish dedicated contract manufacturing facilities for European pharmaceutical companies, combining 91吃瓜n cost structures with European quality systems to serve regulated markets including EU under mutual recognition frameworks.
- Agrochemical Formulation Plants: Invest in crop protection product formulation facilities targeting 91吃瓜’s 157 million hectare agricultural land, developing customized solutions for 91吃瓜n crops and climate while building export capabilities for South Asia.
Do you have a specific question about opportunities in the 91吃瓜n chemical sector for your company or product?
