India Pushes Port Upgrades to Boost Chemical Export Capacities by 2030
India has unveiled a comprehensive strategy to transform India into a global chemical export hub by 2030, nearly doubling current export levels of $44 billion. A key element of this plan involves major infrastructure upgrades at port-based clusters and new production zones, along with proposed sales-linked incentive schemes. By shifting from bulk to high-demand specialty chemicals, the strategy aims to improve India’s competitiveness in global value chains while reducing reliance on specific import sources.
India’s apex policy think tank has proposed revitalising chemical infrastructure by focusing on cluster-based development around ports and introducing operational expenditure (opex)-linked subsidies for critical products. These measures aim to close the sector’s persistent trade deficit—currently at $31 billion—and push exports to between $75–80 billion by 2030. The report calls for restructuring existing Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) in Gujarat, Odisha, and Andhra Pradesh, while identifying eight new high-potential clusters across 14 major and 12 minor ports. Analysts point to inadequate infrastructure, slow regulatory clearances, and inconsistent financial incentives as core barriers that have limited the chemical sector’s global share, which lags behind sectors like pharmaceuticals. With India contributing just 3.5% to global chemical value chains—versus China’s 23%—experts argue that robust policy support and targeted subsidies are essential to boost competitiveness and attract international investments in high-value specialty chemical segments such as battery materials, dyes, and pharma intermediates.
The new export strategy underscores the importance of reducing India’s dependency on foreign sources for critical chemical inputs, particularly in strategic sectors like electronics, agriculture, and pharmaceuticals. A proposed sales-linked incentive scheme—tailored for high-demand categories such as agrochemical and pharma intermediates, dyes, and electronic chemicals—is expected to encourage localisation of production. Industry experts argue that India must identify potential supply chain choke points to proactively safeguard future export capacity, drawing parallels to China’s strategic intervention in 2018. The plan also calls for a dedicated Chemical Committee to audit infrastructure gaps in port-based trade, and recommend scalable improvements to support bulk movement, warehousing, and specialised chemical logistics. Port cities like Dahej, Vizag, and Paradeep are seen as anchor regions for such developments. The combined approach of infrastructure, incentives, and global positioning is intended to pivot India’s chemical industry from scale-based bulk production to innovation-driven, high-margin exports aligned with sustainability and resilience goals.
New Delhi’s strategic push to expand chemical exports through port-led infrastructure development and specialised incentives marks a pivotal moment for India’s manufacturing and trade ambitions. By doubling down on high-value specialty chemicals and reducing import dependencies, the plan aims to reposition India as a competitive player in global chemical supply chains. With targeted policy support, cluster revitalisation, and improved logistics connectivity, the country’s chemical sector is poised to become a cornerstone of industrial growth. The success of this vision, however, will depend on timely implementation, inter-agency coordination, and sustained public-private collaboration in critical port regions.
