Chemical Manufacturing in India: Key States, Growth, and Opportunities

When it comes to chemical manufacturing in India, the production of industrial chemicals, pharmaceuticals, agrochemicals, and specialty compounds that power everything from medicines to plastics. Also known as industrial chemistry, it’s one of the fastest-growing sectors in the country, contributing over $180 billion annually to the economy. Unlike flashy tech startups, this industry runs on real infrastructure—factories, pipelines, storage tanks, and skilled labor—and it’s not going anywhere.

Gujarat, the state that produces nearly 40% of India’s chemicals, including petrochemicals, dyes, and fertilizers. Also known as India’s chemical hub, it’s home to the Dahej and Hazira industrial corridors, where giants like Reliance and LG Polymers operate at full scale. Maharashtra, the second-largest player, focuses on pharmaceuticals, dyes, and specialty chemicals with strong export ties to Europe and the US. Also known as India’s pharma backbone, cities like Mumbai and Pune host over 60% of the country’s drug makers. These aren’t just names on a map—they’re the engines behind everything from your shampoo to your painkiller.

What’s driving this growth? Simple: demand. India needs more fertilizers for its farms, more polymers for packaging, more active pharmaceutical ingredients for global medicine supply chains. The government’s Production Linked Incentive (PLI) scheme is pushing local production over imports. Companies are building new plants because they can make chemicals cheaper here than buying them from China or the Middle East. And it’s not just big corporations—small manufacturers are stepping in too, filling niche gaps like specialty dyes, food-grade additives, and eco-friendly solvents.

There’s a reason why posts on this site cover everything from high-demand chemicals in 2025 to the rise of Indian chemical producers. This isn’t theoretical—it’s happening in real factories, on real assembly lines, with real profits being made. Whether you’re looking to start a small chemical business, source materials, or just understand how your everyday products are made, the answers are right here.