NITI Aayog report: chemical sector can reach USD 1 trillion and 12% GVC share by 2040
On 3 July 2025 in New Delhi, NITI Aayog released 'Chemical Industry: Powering India's Participation in Global Value Chains', noting India's 3.5% share in global chemical value chains and a USD 31 billion chemical trade deficit in 2023.
Summary
NITI Aayog released its report 'Chemical Industry: Powering India's Participation in Global Value Chains' on 3 July 2025. The report notes India's 3.5% share in global chemical value chains and a chemical trade deficit of USD 31 billion in 2023, reflecting high dependence on imported feedstock and specialty chemicals. With targeted fiscal and non-fiscal reforms, the report says India can build a USD 1 trillion chemical sector and achieve a 12% share of global value chains by 2040.
Key facts
- Report
- Chemical Industry: Powering India's Participation in Global Value Chains — NITI Aayog, 3 July 2025
- Current
- 3.5% GVC share; USD 31 billion trade deficit (2023)
- Target
- USD 1 trillion sector; 12% GVC share by 2040
Practice MCQs 3 questions
According to NITI Aayog's chemical industry report (July 2025), what is India's current share in global chemical value chains?
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Correct answer: D — 3.5%
NITI Aayog: India's 3.5% share in global chemical value chains and its chemical trade deficit of USD 31 billion in 2023 underscore high import dependence.
NITI Aayog's report says India can achieve a USD 1 trillion chemical sector and 12% GVC share by which year?
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Correct answer: B — 2040
NITI Aayog: targeted reforms will enable India to have a USD 1 trillion chemical sector and achieve 12% GVC share by 2040.
What was India's chemical trade deficit in 2023 according to NITI Aayog's July 2025 report?
Show answer
Correct answer: A — USD 31 billion
NITI Aayog: heavy reliance on imported feedstock contributed to a USD 31 billion trade deficit in 2023.