Industry Odisha Bureau, Aug 31: New Delhi: The government may soon offer incentives encouraging geographic diversification of chemical exports. This proposed support aims to help exporters access new international markets. The US currently accounts for 18% of India’s chemical exports. Europe, Southeast Asia, Africa and Latin America present fresh diversification opportunities.
Officials cited concentration risks from heavy reliance on a single export destination. Expanding across multiple regions could build a more resilient export ecosystem. A product-region strategy would target specific chemical categories by market. Africa could offer opportunities in agrochemicals, water-treatment and construction chemicals specifically.
Latin America presents demand for agrochemicals, specialty chemicals, dyes and pigments. Southeast Asian markets could absorb surfactants, polymers and industrial intermediates well. Europe offers openings in specialty, green and pharmaceutical chemical segments. This matching approach could strengthen India’s position within global value chains.
India’s chemical exports rose sharply, from ₹2,79,337 crore in FY21. They reached ₹3,68,597 crore in FY22, growing nearly 32% that year. Growth slowed to 3.2% in FY23, then contracted 2.1% in FY24. Exports rebounded 5.4% in FY25, reaching ₹3,92,769 crore overall.
Niti Aayog has targeted scaling annual chemical exports to $81 billion by 2030. That includes $45 billion from specialty chemicals and $26 billion from petrochemicals. The roadmap also envisions India becoming a net-zero importer by FY30. Moving toward higher-value, application-specific products remains central to this ambition.
On imports, China accounted for 41.8% of India’s organic chemical imports in April. That represented roughly $560 million of India’s total $1.34 billion imports. The share climbed sharply from 29.4% just a year earlier. Officials said diversifying sourcing geographies could improve supply security meaningfully.
The strategy unfolds amid structural headwinds facing India’s chemicals sector broadly. These include long-gestation projects, weak margins and persistent global oversupply pressures. Further targeted support could help exporters navigate these industry-wide challenges. Combining market diversification with higher-value manufacturing remains India’s clearest path toward stronger chemical-sector competitiveness.
