2025 Recap: India's Chemical Industry Drives Resilience, Sustainability, and Innovation
India's chemical industry experienced a defining 2025, marked by resilience, strategic transformation, and global expansion. Key drivers included capacity expansions, acquisitions, and export diversification, strongly supported by the China-plus-one strategy and government policies. Accelerated investments in green chemistry, energy efficiency, and digitalization, including AI, positioned the sector for a sustainable and innovation-driven future, with projections to reach $1 trillion by 2040.
The year 2025 was pivotal for India's chemical industry, characterized by robust resilience, strategic consolidation, and a pronounced shift towards sustainable and innovative practices. Despite global volatility, Indian companies expanded their global footprint through significant capacity additions, strategic acquisitions like TCE acquiring CDI Engineering Solutions, and diversifying export markets. A major thrust was observed in sustainability, moving from conceptual intent to practical execution with substantial investments in green chemistry, energy efficiency, and circular economy models. The 'China-plus-one' strategy continued to benefit Indian manufacturers, bolstered by government support via PLI schemes and infrastructure development, enhancing long-term competitiveness. Digitalization, AI-led process optimization, and the growth of specialty chemicals emerged as critical differentiators. Notable projects included Adani Petrochemicals' JV for a PVC plant, Nayara Energy's ₹68,000 crore ethane cracker, and L&T's ₹48,000 crore investment in green ammonia plants. India also surpassed 200 GW in renewable capacity, with ambitious targets for green hydrogen and nuclear energy. The pharmaceutical sector saw a ₹5,000 crore innovation hub, and significant discoveries of rare earth elements were confirmed. Collaborations between industry and academia, such as DCM Shriram Chemicals with ICT Mumbai on green chemistry, further fueled innovation, positioning India's chemical sector for a projected $1 trillion valuation by 2040, driven by AI, sustainability, and global competitiveness.
