1. Rising Domestic Demand
India’s expanding population, a growing middle class and an increased focus on sustainability will continue to drive domestic demand for chemicals across various sectors, ranging from personal care and pharmaceuticals to construction materials and agriculture.
2. Focus on Innovation
Innovation is playing a key role in transforming the Indian chemical industry. Instrumental in enhancing efficiency and sustainability, innovation has helped in greener production techniques that reduce resource consumption. It has enhanced competitiveness through cost-effective and high-performance solutions and has helped to find novel uses for by-products, creating new revenue streams.
3 February 2026
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3. Government Initiatives
Supportive government policies promoting Make in India plus anti-dumping as well as export promotions will significantly impact the Indian chemical industry. This will reduce dependence on various imports, increase exports and enhance India’s self-sufficiency. It will also create jobs in the chemical industry and its associated sectors.
4. Diversifying Supply Chains
As global supply chains adjust to the existing geopolitical uncertainties, India’s robust infrastructure and large workforce position it as a reliable and competitive manufacturing hub. In this scenario, diversifying supply chains can provide the Indian chemical industry with more stability, potentially lower costs and access to a wider range of options.
5. Sustainable Practices
The growing emphasis on sustainability has increased the demand for greener chemicals as well as greener technologies and processes. Increased focus on sustainability will certainly be beneficial for the chemical industry in more ways than one.
