Tariff Cuts, MSME Boost to Drive India's Chemical Exports Past $30B

The budget suggestions to reduce import tariffs on vital raw materials and initiatives for MSMEs will enhance domestic manufacturing and elevate India's chemical exports, projected to exceed $30 billion this fiscal year, CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council) stated.

Tariffs have been suggested to reduce essential raw materials like phosphoric acid, boric acid, and sorbitol. India's chemical exports reached $21.2 billion during the period of April to December in FY25.

The Indian chemical industry was valued at $220 billion in 2022 and is expected to grow to $1 trillion by 2040. It accounts for approximately 7% of India's GDP and 2.8-3% of the entire global chemical sector. The sector provides jobs for over 2 million individuals, both directly and indirectly.

CHEMEXCIL Chairman Abhay Udeshi stated that the council is concentrating on emerging markets and advocating for 'Green Chemicals' and bio-based specialty chemicals to align with international sustainability trends.

“These initiatives are set to boost exports significantly. The budget facilitates greater trade, boosts manufacturing, promotes exports, and enhances the ease of doing business,” he said.

On February 8, the council will recognize exceptional exporters at its Export Awards ceremony.

India occupies a prominent role in the global trade of chemicals, ranking 14th in exports and 8th in imports worldwide (excluding pharmaceuticals). Between April and September 2024, India's exports of dyes and dye intermediates reached a total of US$ 1.26 billion.