Economic Survey 2025–26 Highlights Steady Growth of Chemicals and Petrochemicals Sector
Economic Survey 2025–26 Highlights Steady Growth of Chemicals and Petrochemicals Sector
Chemicals and Petrochemicals sector contributed 8.1 per cent to the overall manufacturing sector’s Gross Value Added (GVA) in FY 24
The Chemicals and Petrochemicals sector continues to play a significant role in the industrial development of the Indian economy, with strong backward linkages to petroleum refining and natural gas processing and forward linkages with several downstream industries.
As highlighted in the Economic Survey 2025–26, the sector contributed 8.1 per cent to the overall manufacturing sector’s Gross Value Added (GVA) in Financial Year 2024.
The Economic Survey further notes a consistent upward trend in the production of selected major chemicals and petrochemicals over the last decade. Total production increased from 45,638 thousand metric tonnes (MT) in FY16 to 58,617 thousand MT in FY 25, registering a Compound Annual Growth Rate (CAGR) of 2.8 per cent during FY16–FY25.
Remark: Department of Chemicals and Petrochemicals monitors selected Major Chemicals and Petrochemicals products only. The data source in respect of Installed Capacity and Production of Chemical products is Monthly Production Reports (MPRs) received from the chemical manufactures under large and medium scale units only.
