{"id":53337,"date":"2025-07-04T10:00:50","date_gmt":"2025-07-04T04:30:50","guid":{"rendered":"https:\/\/vajiramandravi.com\/current-affairs\/?p=53337"},"modified":"2025-07-04T11:38:56","modified_gmt":"2025-07-04T06:08:56","slug":"niti-aayogs-strategy-to-double-chemical-exports-by-2030","status":"publish","type":"post","link":"https:\/\/vajiramandravi.com\/current-affairs\/niti-aayogs-strategy-to-double-chemical-exports-by-2030\/","title":{"rendered":"NITI Aayog&#8217;s Strategy to Double Chemical Exports by 2030"},"content":{"rendered":"<h2><b>Chemical Exports Latest News<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NITI Aayog has proposed measures to nearly double India\u2019s $44 billion chemical exports by 2030.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Key recommendations include developing production clusters for scale, upgrading port infrastructure for improved logistics and storage, and introducing a sales-linked incentive scheme to localise production and enhance exports of critical chemicals.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The initiative addresses limited domestic demand as a major growth constraint.<\/span><\/li>\n<\/ul>\n<h2><b>India\u2019s Chemical Industry<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India is the <\/span><b>6th largest chemical producer globally and 3rd in Asia<\/b><span style=\"font-weight: 400;\">, contributing 7% to the national GDP.\u00a0 It ranks 14th in global chemical exports (excluding pharma).<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">In FY23, exports of major chemicals and petrochemical products stood at US$ 23.8 billion.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It had a $31 billion trade deficit in chemicals in 2023 and held a 3.5% share in global value chains, compared to China\u2019s 23%.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s chemical market was valued at $220 billion in 2023, with ambitions to reach $1 trillion by 2040.<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Experts emphasized the need to prioritize exports, noting that domestic demand alone cannot drive the sector to a $1 trillion valuation by 2040.<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Regional Manufacturing Hubs<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Chemical manufacturing is concentrated in Maharashtra and Gujarat, with West Bengal and Tamil Nadu also being major contributors.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India\u2019s chemical industry produces over 80,000 commercial products and is classified into bulk chemicals, agrochemicals, specialty chemicals, polymers, petrochemicals, and fertilizers.<\/span><\/li>\n<\/ul>\n<h3><b>Global Leadership in Niche Segments<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">4th largest agrochemical producer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">3rd largest polymer consumer<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Major exporter of dyes and colourants, contributing 16\u201318% to global dyestuff production and holding a ~15% market share in colourants<\/span><\/li>\n<\/ul>\n<h2><b>Government Support to Chemical Industry<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">India has de-licensed the sector (except hazardous chemicals) and is promoting PCPIRs and plastic parks to provide modern infrastructure, increase output, and generate employment.<\/span><\/li>\n<\/ul>\n<h3><b>PCPIR Policy 2020\u20132035: Driving Massive Investment and Job Creation<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The revised Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) Policy targets:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">US$ 142 billion investment by 2025<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">US$ 213 billion by 2030<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">US$ 284 billion by 2035<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Chemical Promotion and Development Scheme (CPDS)<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">CPDS supports the growth of the chemical and petrochemical industry through:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Creation of knowledge products<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Knowledge dissemination via surveys and studies<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Excellence awards for research and innovation in the sector<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h2><b>NITI Aayog Charts Roadmap to Boost Chemical Exports<\/b><\/h2>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">NITI Aayog aims to nearly double India\u2019s annual chemical exports from $44 billion by 2030, citing limited domestic demand as a major constraint.<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Proposed measures include:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Developing new and existing production clusters<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Upgrading port infrastructure for improved logistics and storage<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Launching a sales-linked incentive scheme to promote local production and exports of critical chemicals<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Shift to Specialty Chemicals to Raise Global Value Chain (GVC) Share<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report suggests India can double its share in global value chains to 5\u20136% by 2030 by moving from bulk to high-demand specialty chemicals and increasing exports by $35\u201340 billion with the right policy support.<\/span><\/li>\n<\/ul>\n<h3><b>Proposed Sales-Linked Incentive as Opex Subsidy<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">A sales-linked incentive scheme, structured as an operational expenditure (opex) subsidy, is proposed to:<\/span>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Reduce dependence on specific countries for imports<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"2\"><span style=\"font-weight: 400;\">Expand capacity in targeted sectors like agrochemical and pharma intermediates, battery chemicals, dyes, pigments, and petrochemicals<\/span><\/li>\n<\/ul>\n<\/li>\n<\/ul>\n<h3><b>Identifying Supply Chain Choke Points<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report stressed the importance of identifying potential choke points in India\u2019s chemical supply chain\u2014mirroring China\u2019s approach in 2018\u2014to guide the strategic allocation of subsidies.<\/span><\/li>\n<\/ul>\n<h3><b>Revamping PCPIRs and Revitalizing Hubs<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">The report called for revitalizing existing Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) in Dahej, Paradeep, and Vizag, which face infrastructure, financing, and regulatory challenges.<\/span><\/li>\n<\/ul>\n<h3><b>Port-Centric Cluster Development and Infrastructure Gaps<\/b><\/h3>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It recommended forming a Chemical Committee to address port infrastructure bottlenecks and proposed the development of <\/span><span style=\"font-weight: 400;\">eight high-potential chemical clusters linked to 14 major and 12 minor ports across the country<\/span><span style=\"font-weight: 400;\">.<\/span><\/li>\n<\/ul>\n<p><b>Source:<\/b> <a href=\"https:\/\/www.ibef.org\/exports\/chemical-industry-india\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">IE<\/span><\/a><span style=\"font-weight: 400;\">\u00a0| <\/span><a href=\"https:\/\/indianexpress.com\/article\/business\/chemical-exports-niti-aayog-incentives-port-infra-clusters-10104818\/\" target=\"_blank\" rel=\"nofollow noopener\"><span style=\"font-weight: 400;\">IBEF<\/span><\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>NITI Aayog proposes incentives, port upgrades, and cluster development to boost India&#8217;s chemical exports and reduce trade deficit.<\/p>\n","protected":false},"author":18,"featured_media":53367,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[18],"tags":[1324,60,22,59],"class_list":{"0":"post-53337","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-upsc-mains-current-affairs","8":"tag-chemical-exports","9":"tag-mains-articles","10":"tag-upsc-current-affairs","11":"tag-upsc-mains-current-affairs","12":"no-featured-image-padding"},"acf":[],"_links":{"self":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/53337","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/users\/18"}],"replies":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/comments?post=53337"}],"version-history":[{"count":0,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/posts\/53337\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media\/53367"}],"wp:attachment":[{"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/media?parent=53337"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/categories?post=53337"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/vajiramandravi.com\/current-affairs\/wp-json\/wp\/v2\/tags?post=53337"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}