India’s chemical and petrochemical industry remain a core pillar of the economy, contributing about 7% to GDP and ranking 6th globally and 3rd in Asia by chemical output. Domestic demand is projected to nearly triple and approach about US$1 trillion by 2040, underscoring sustained multidecade growth potential for the sector. Postpandemic expansion has continued, with cumulative FDI inflows into chemicals (exfertilizers) reaching roughly US$23.4 billion between April 2000 and June 2025. Exports of chemicals and allied products totaled about US$9.2 billion in Q1 FY26 (April–June), reflecting resilient external demand. Policy support also remains strong, with Rs 1.62 lakh crore allocated to the Ministry of Chemicals and Fertilizers in the Union Budget 2025–26 to catalyze capacity and innovation.

We, DART Analysts, based on data up to 2022, reported that the Indian Chemical and Petrochemical industry had achieved an overall industry Compound Annual Growth Rate (CAGR) of 13.1%, with projections of 13% CAGR for the period 2023–2027. The earlier analysis highlighted robust growth potential driven by strong export performance, easing regulation norms, and high profitability across top-performing companies such as Solar Industries India Limited, Pidilite Industries, and BASF India Ltd.

However, the updated analysis (as of 2025) shows a moderation in growth momentum, with the industry CAGR averaging 1.6% over the period 2022–2025. Among the top Performers companies Pidilite Industries has the highest CAGR 5.1% nearing the Industry Report Forecast of 5.4%. Remaining companies have the CAGR in the range of 2.5% – 4.48%.

*Companies ranked based on FY2025 Revenue (highest – lowest)

Growth remained muted during 2022–2024 as export demand weakened and prolonged destocking hurt volumes and pricing across major markets. China’s slowdown and shift to net exports intensified competition, depressing Indian realizations. Volatile crude and gas costs with limited pass-through squeezed margins, especially in commodity chemicals like chlor-alkali, impacting Gujarat Alkalies. Weak domestic demand in key sectors delayed recovery until 2025, while structural cost and logistics disadvantages further constrained competitiveness.

Looking ahead, the Indian Chemical and Petrochemical Industry is expected to stabilize and grow at a CAGR of around 4% or will grow exceeding it between 2026 and 2029, driven by robust domestic demand, massive capital investments, government policy support, global supply chain diversification, and the specialty chemicals boom.

Here is a quick overview of key players in the industry.

Supreme Petrochem Ltd
Supreme Petrochem Ltd is a prominent Indian petrochemical company specializing in the production of polymers and related products. Established in 1995, the company has grown to become a key player in the petrochemical sector, catering to diverse industrial applications. Headquartered in Gujarat, Supreme Petrochem combines technological innovation, quality manufacturing, and sustainable practices to strengthen its domestic and international presence.

Pidilite Industries
Pidilite Industries Ltd is a renowned Indian conglomerate that operates across various sectors, primarily in the chemicals and consumer products industry. Established in 1959, the company has grown to become a market leader in adhesives, sealants, construction chemicals, and art and craft materials. Pidilite’s commitment to innovation, quality, and customer-centricity has propelled it to national and international prominence.

Himadri Speciality Chemical
Himadri Speciality Chemical Ltd is a leading Indian company specializing in carbon-based products and advanced chemicals for industrial applications. Established in 1993, the company has evolved into a key player in specialty chemicals, including carbon black, chemicals for batteries, and performance materials. With a focus on innovation, sustainability, and global standards, Himadri serves diverse industries across India and overseas.

BASF India Ltd.
BASF India Ltd. is the Indian subsidiary of BASF SE, a global chemical leader, offering a wide range of chemicals, plastics, performance products, and agricultural solutions. Established in 1996, BASF India has expanded its operations to provide innovative, sustainable, and high-quality solutions to multiple sectors, including automotive, construction, agriculture, and consumer goods. The company emphasizes research-driven growth and environmental responsibility.

Solar Industries India Limited
Solar Industries India Ltd (SIIL) is a leading explosive manufacturer and provider of explosive-related solutions with a global footprint. Established in 1995, the company has rapidly grown to become a prominent player in the explosives and explosive-based systems industry. Headquartered in Nagpur, India, SIIL has expanded its operations across various countries, offering a wide range of products and services that cater to diverse industries.

Industry Performance

India’s chemical industry is incredibly diverse, covering over 80,000 commercial products and encompassing bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilizers. As the sixth largest chemical producer globally and third in Asia, it contributes 7% to India’s GDP.

On the global stage, India is a major player, ranking fourth in agrochemical production, accounting for a significant share of dyestuff and dye intermediate output, and boasting a 15% global market share in colorants. The country’s chemical industry is de-licensed, with a few hazardous chemicals being exceptions. India’s position in chemical exports and imports is strong, standing 14th in exports and eighth in imports worldwide (excluding pharmaceuticals). India’s strategic proximity to the Middle East, a key source of petrochemical feedstock, positions it advantageously for economies of scale, further boosting its chemical industry’s potential.

The performances of key companies in the industry give indications that the industry is profitable and has greater growth opportunities. The reported margin of the industry by analyzing the key players was around 11.3% by taking into consideration the last 3 years’ data. Details are as follows.

Industry Trends

India’s chemicals and petrochemicals sector continues to expand on the back of domestic consumption, export diversification, and capacity additions. India ranks among the top global producers by volume, with strong footprints in specialty chemicals, dyes and pigments, agrochemicals, and chlor-alkali, while petrochemicals capacity is in a multiyear upcycle. After destocking and margin pressure in FY23–FY24, order books and spreads began normalizing through 2024, setting up a measured recovery in FY25.

• Green hydrogen push: India’s National Green Hydrogen Mission is catalyzing green ammonia/methanol pathways for chemicals, targeting 5 MMT green hydrogen annually by 2030. Port- and cluster-led projects (e.g., Paradip, VOC Port) and budgetary support are accelerating early investments and offtake models into core chemical value chains.​
• Circular and green chemistry:Green chemicals are scaling, with the market expected to grow at over 10% CAGR and exceed $15 billion by 2027. EPR, water stewardship, and energy-efficiency policies are accelerating ZLD adoption, recycling, and renewable integration across chemical clusters to meet sustainability and export-market requirements.​
• PCPIR-driven mega capex: PCPIRs (Dahej, Paradip, Visakhapatnam) remain anchor platforms for large integrated projects, with targets reaching Rs. 20 lakh crores by 2035. Petrochemical capacity is projected to rise from ~29.6 MMTPA to ~46 MMTPA by 2030, aided by integrated infrastructure and supportive logistics incentives.​
• China+1 and specialty surge: Supply-chain de-risking is boosting specialty chemicals, custom manufacturing, and exports, with double-digit growth in higher-value segments. Global players are expanding partnerships and FDI into India’s clusters to serve US/EU/Asia demand with upgraded capabilities and compliance.

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