India's Chemical Sector to Grow with New Chemical Parks and Major Investment Funds
India's chemical industry is set for significant growth, backed by Budget 2026 announcements. Rs. 3,000 crore is allocated for three chemical parks, alongside a Rs. 90,500 crore investment fund. An additional Rs. 39,500 crore will fund Carbon Capture Utilisation and Storage (CCUS) initiatives across five key sectors. Industry leaders at the Annual Alkali Conference emphasized structural changes, rapid capacity expansion in caustic soda and PVC, and the growing importance of exports and operational excellence in a dynamic global environment.
India's Department of Chemicals & Petrochemicals (DCPC) unveiled substantial government initiatives at the 11th Annual Alkali Industry Conference 2026, aiming to propel the chemical sector forward. Deepankar Aron announced an allocation of Rs. 600 crore for the coming financial year, totaling Rs. 3,000 crore over five years, to establish three chemical parks through a 'challenge mode' where states will bid. Additionally, the government plans an investment fund nearing Rs. 90,500 crore for the chemical sector. A significant Rs. 39,500 crore fund is earmarked for Carbon Capture Utilisation and Storage (CCUS) strategies across five critical sectors: Chemicals, Petrochemicals, Cement, Steel, and Power.Aditya Shriram, President of AMAI, highlighted that the industry is experiencing structural rather than incremental change, facing unprecedented challenges alongside new opportunities. He emphasized the dramatic shift in the external environment, with economic and geopolitical realignments redefining supply chains and energy choices, making agility crucial for survival. The Indian chemical industry is witnessing rapid capacity augmentation, particularly in caustic soda, projected to reach 67 lakh MTPA, and PVC, expected to surge by over 150% to 41.2 lakh MTPA. While soda ash capacities are also growing to 47 lakh MTPA, Shriram stressed the criticality of market discipline, exports, and operational excellence as capacity additions outpace near-term demand. The conference theme, 'Shaping the Future: Markets, Technology and Sustainability,' encapsulated the defining pillars for the industry's next decade.
