Introduction

The Economic Survey for 2025–26 has underscored the vital importance of the Chemicals and Petrochemicals industry as a driving force behind India's industrial machinery. Serving as a critical node in the economy, this sector creates essential backward integration with petroleum refining and natural gas, while simultaneously fueling a vast array of downstream industries through forward linkages. The latest data indicates a resilient and upward trajectory for this manufacturing powerhouse.

Key Facts
GVA Contribution

8.1% of Manufacturing Sector (FY24)

Current Production

58,617 Thousand MT (FY25)

Production Growth

Up from 45,638 Thousand MT (FY16)

10-Year CAGR

2.8% (FY16–FY25)

Data Scope

Large & Medium Scale Units

Economic Impact & GVA

Manufacturing Backbone

According to the latest financial assessments, the sector has solidified its position within the national economy. In the Financial Year 2024, the Chemicals and Petrochemicals industry accounted for a substantial 8.1 percent of the Gross Value Added (GVA) across the entire manufacturing landscape, highlighting its indispensable role in national output.

Strategic Linkages

The industry acts as a catalyst for broader economic activity. It processes raw materials from the energy sector (refining and gas) and provides essential inputs for sectors ranging from agriculture and pharmaceuticals to textiles and automotive manufacturing.

Production Trends (Decade Review)

Consistent Upward Mobility

A decade-long analysis reveals a stable growth pattern. In FY 2016, total production stood at 45,638 thousand metric tonnes (MT). By FY 2025, this figure climbed to 58,617 thousand MT.

Growth Rate

This increase reflects a Compound Annual Growth Rate (CAGR) of 2.8% over the period from FY16 to FY25, demonstrating the sector's resilience and steady expansion capabilities despite global market fluctuations.

Source Information

Official Source: Ministry of Chemicals and Fertilizers, Department of Chemicals and Petrochemicals.

Note on Data: The statistics provided cover selected major chemicals and petrochemical products. Production data is derived from Monthly Production Reports (MPRs) submitted specifically by medium and large-scale manufacturing units.

Click here to view the official PIB Press Release

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Frequently Asked Questions

Q. What is the Chemicals sector's contribution to India's manufacturing GVA?
As of Financial Year 2024, the sector contributes 8.1% to the Gross Value Added (GVA) of the manufacturing sector.
Q. How much has production increased over the last 10 years?
Production has risen from 45,638 thousand MT in FY16 to 58,617 thousand MT in FY25.
Q. What is the CAGR of the sector for FY16–FY25?
The sector registered a Compound Annual Growth Rate (CAGR) of 2.8% during this period.
Q. Does this data cover small-scale industries?
No, the reported data is compiled from Monthly Production Reports (MPRs) received primarily from large and medium-scale units.
Q. What are the key linkages of this sector?
It has strong backward linkages to petroleum refining and natural gas, and forward linkages to various downstream industries.