India Eyes Global Chemical Markets: New Export Strategy

India is preparing to introduce policy support and financial incentives to encourage its chemical exporters to diversify their markets, moving beyond a heavy reliance on the US. The initiative aims to foster growth in specialty chemical exports across Europe, Asia, and Latin America, thereby strengthening India's position in global chemical value chains.

This strategic shift is prompted by the significant concentration of Indian chemical exports to the US, which accounts for 18% of the total. By encouraging exports to regions such as Europe, Southeast Asia, West Asia, Africa, and Latin America, India seeks to build a more resilient export ecosystem and reduce geographic concentration risks.

Official data shows India's chemical exports saw substantial growth from ₹2,79,337 crore in FY21 to ₹3,92,769 crore in FY25. Niti Aayog has set a target of $81 billion in annual chemical exports by 2030, with a significant portion from specialty chemicals.

Furthermore, India is addressing import vulnerabilities, particularly its increasing dependence on China for organic chemical imports, which rose to 41.8% in April 2026. Diversifying sourcing geographies is identified as crucial for improving supply security and reducing concentration risks.