India's Global Chemical Sector Share Seen Rising To 5-6 Per cent By 2030, Revenue Pegged at USD 1 Trillion By 2040

New Delhi, Mar 5 (KNN) Projecting that India’s share in global chemical sector would increase to 5-6 Per cent  by 2030, Union Chemicals and Fertilisers Minister JP Nadda has said that Budgetary provision of Rs 13,000 crore for Bio-Pharma SHAKTI and three dedicated Chemical Parks is a strategic bet on the country's future.

The Minister said that the country's chemical sector would achieve total turnover of USD 1 trillion by 2040.

Nadda said this while addressing a post-Budget webinar on “Sustaining and Strengthening Economic Growth,” held as part of consultations following the Union Budget 2026–27.

Referring to the Prime Minister’s emphasis on Free Trade Agreements (FTAs) as gateways to a developed India, Nadda said India must leverage emerging global opportunities in pharmaceuticals and chemicals. 

He noted that while India has earned recognition as the “pharmacy of the world” through its strength in generics, nearly 40 per cent of global medicines are expected to be biologics by 2035. 

With patents worth an estimated USD 300 billion set to expire by 2030, he said the transition towards biologics presents a significant opportunity.

Under the BioPharma SHAKTI framework, Rs 10,000 crore has been allocated over five years to strengthen domestic capabilities in biosimilars and advanced biopharmaceuticals. 

The Minister stated that even a one per cent share of the global biosimilars market could translate into an annual opportunity of Rs 2 lakh crore for India. 

He also emphasised strengthening institutions such as National Institute of Pharmaceutical Education and Research (NIPER), expanding clinical trial infrastructure to 1,000 sites nationwide, and reinforcing the Central Drugs Standard Control Organization (CDSCO) to expedite regulatory approvals for biosimilars and fermentation-based drugs.

On the chemicals sector, Nadda observed that India’s current output stands at Rs 19.4 lakh crore, with strong performance in segments such as dyes and agrochemicals, but its global market share remains around 3 per cent. 

To address infrastructure gaps in the sector, Rs 3,300 crore has been earmarked in ther Budget 2026-27 for three world-class chemical parks featuring plug-and-play utilities, advanced effluent treatment systems, integrated logistics and built-in safety mechanisms. 

The parks are expected to reduce production costs by 20–40 per cent through industrial symbiosis and promote circular economy practices. The Minister outlined a target to raise India’s global chemical sector share to 5–6 per cent by 2030 and achieve a USD 1 trillion turnover by 2040.

(KNN Bureau)