The chemical industry has played a pivotal role in boosting the Indian economy and providing livelihood to more than two (02) million people. As the Indian Government intends to transform India into a global manufacturing hub for chemicals, the industry is set to witness major positive shifts. India, indeed, has become a key investment destination for chemical manufacturers.

Over the last few years, the country has become the sixth-largest player in the chemical business. As the demand surpasses supply, the gap creates sizeable opportunities to support the development of large-scale infrastructure for manufacturing various chemical products. Here are various areas of opportunities in the Indian Chemical Industry:

Active Pharmaceutical Ingredients (APIs) and Key Starting Materials (KSMs)

As per the 2019 trade statistics, India imported APIs and KSMs worth USD 3 billion approximately, which accounts for more than 60% of the total imports by pharmaceutical companies. Hence, there are attractive investment opportunities in the domestic manufacturing of APIs and KSMs with lucrative incentives from the Government schemes.


With an increasing demand for home care products, the Indian market is expected to undergo a supply deficit in the upcoming years. Also, it is expected that the demand for premium detergents & liquids and biosurfactants is going to increase, leaving countless opportunities for the manufacturers.

Water Treatment Chemicals

India imports more than 90% of the total demand for water treatment membranes (ultrafiltration, reverse osmosis and nanofiltration), which opens doors of opportunities for polymer-manufacturing companies. Stringency in effluent discharge norms and policies related to chemical regulations helps in the development of advanced membranes and specialty chemicals for industrial effluent treatment.

Personal and Home Care Products

Consumers are shifting their preferences towards mild, safe and natural ingredients in personal and home care products. This leaves the market open for various cosmetics and home care product manufacturers.

With a large local marketplace and superior manufacturing skills across the value chain, India has become one of the most attractive investment markets. Therefore, manufacturers of chemicals and chemical products can avail the advantage of low-cost labour and promising investment policies of the Indian Government to expand their footprint and earn profits.

Reaching out to a regional Regulatory expert can help you understand the various aspects for entering the Indian market.


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