The initiative, backed by a ₹600 crore allocation, aims to transform India into a global manufacturing hub through a cluster-based, infrastructure-led approach.
About Chemical Parks
- They are planned industrial clusters explicitly designed for chemical and petrochemical manufacturing, where multiple units operate together, sharing world-class infrastructure and common services.
Status of Chemical Industry in India
- Contributes 7% to national GDP.
- Accounts for 8.1% of manufacturing GVA (Gross Value Added) (FY24)
- India is 6th largest chemical producer globally and 3rd largest in Asia.
Challenges faced by Chemical Industry
- Import Dependency: Heavy reliance on imports led to a USD 31 billion trade deficit in 2023.
- Infrastructure & Logistics: Outdated industrial clusters and high logistics costs create a significant price disadvantage compared to global competitors.
- Missed Opportunities: Focusing on bulk production (upstream) instead of high-value specialty products (downstream).
- Low R&D: Investment in R&D stands at only 0.7% (against global average of 2.3%).
- Environmental compliance (EC) hurdles: Long processing times, complex clearance requirements, and overlapping regulatory scrutiny at state and central levels.
- Skill Gap: A 30% shortfall in skilled professionals, particularly in niche areas like green chemistry, nanotechnology, etc.
Other Initiatives for promotion of Chemical Industry:
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