India imports more than $70 billion worth of chemicals every year, making it one of the largest chemical importers in the world. But what’s the single most imported chemical? The answer isn’t something fancy like rare earth elements or high-end pharmaceutical intermediates. It’s something simple, everyday, and absolutely essential: chlorine.

Yes, chlorine. Not the kind you use to clean your pool, but industrial-grade elemental chlorine and its primary compound, sodium hypochlorite. This chemical shows up in almost every corner of India’s economy - from water treatment plants in Mumbai to textile dyeing units in Surat, from PVC pipe factories in Gujarat to pesticide production in Punjab. It’s the backbone of sanitation, agriculture, and manufacturing. And India doesn’t produce enough of it to keep up.

Why? Because chlorine production requires massive amounts of electricity and salt, and India’s domestic production capacity has lagged behind demand. In 2025, India produced about 2.8 million metric tons of chlorine, but consumed over 4.1 million metric tons. That leaves a gap of 1.3 million metric tons - roughly 32% of total demand - filled entirely by imports. China, South Korea, and Saudi Arabia are the top three suppliers, shipping chlorine in liquid form via specialized tankers or as sodium hypochlorite in concentrated solutions.

Why chlorine dominates India’s chemical import list

It’s not just about volume. Chlorine’s role is systemic. It’s the starting point for dozens of other chemicals. For example:

• It’s used to make PVC (polyvinyl chloride), which is everywhere - from water pipes to packaging films.
• It’s a key ingredient in bleach and disinfectants, critical for public health infrastructure.
• It’s used to produce chlorinated solvents for paint, adhesives, and industrial cleaning.
• It’s essential in manufacturing polyurethane foam for mattresses and insulation.
• It’s a precursor to herbicides and insecticides used in Indian agriculture.

Without chlorine imports, India’s construction, sanitation, and farming sectors would grind to a halt. Local manufacturers don’t have the scale or energy infrastructure to compete with global producers who benefit from cheaper natural gas and integrated salt-chlorine plants. India’s domestic chlorine plants are mostly old, inefficient, and scattered. The largest producer, Gujarat Alkalies & Chemicals, runs at 70% capacity. Others are even lower.

What else gets imported? A quick look at the top 5

While chlorine leads by volume, other chemicals are equally important in terms of value and strategic need:

Notice something? All of these are petrochemicals - building blocks for plastics and synthetic materials. That’s no accident. India’s manufacturing boom, especially in packaging, automotive parts, and construction, is driving demand for synthetic materials. But the country still lacks the refining and cracker infrastructure to turn crude oil into these chemicals efficiently. So it buys them ready-made.

Who’s behind the imports?

The biggest importers aren’t chemical giants like BASF or Dow. They’re Indian firms that specialize in distribution and blending. Companies like Reliance Industries and Lupin import chlorine and ethylene to feed their own polymer plants. Smaller players like Sudarshan Chemical Industries and Atul Ltd import phthalic anhydride and TDI to make dyes, resins, and foams.

What’s surprising is that some of the biggest importers are actually from the pharmaceutical sector. Yes - even drug makers import chlorine. Why? Because chlorine is used to purify water in drug manufacturing and to synthesize active ingredients. A single large API (active pharmaceutical ingredient) plant can use over 10,000 metric tons of chlorine a year. India produces 20% of the world’s generic drugs, and that demand can’t be ignored.

Why doesn’t India make more of its own?

The problem isn’t technology. India has the know-how. The issue is cost and infrastructure.

Chlorine is made through electrolysis of saltwater. That takes electricity. And lots of it. India’s grid is still unstable in many industrial zones. Many factories rely on diesel generators - which are 3x more expensive than grid power. In contrast, countries like Saudi Arabia and China use cheap natural gas or coal to power their chlor-alkali plants. They also have integrated petrochemical complexes where chlorine is a byproduct of ethylene production. India doesn’t have enough of those.

Plus, environmental regulations make building new chlorine plants hard. Local communities near proposed sites protest over risks of leaks and pollution. The last major plant proposed in Odisha in 2022 was shelved after public opposition. So imports fill the gap - for now.

What’s changing?

India’s government is trying to fix this. The Production Linked Incentive (PLI) scheme for specialty chemicals, launched in 2021, offers up to 15% cashback on capital investment for new chemical plants. Over ₹14,000 crores ($1.7 billion) has been allocated to attract global players like Linde and INEOS to set up integrated plants in Gujarat and Maharashtra.

Some progress is happening. In 2025, a new chlor-alkali plant in Dahej, Gujarat, started operations with 300,000 metric tons per year capacity - the largest in India. It’s powered by solar and grid electricity, with zero emissions. If more plants like this come online, India could cut imports by 20% in the next five years.

But until then, chlorine will keep flowing in. It’s not glamorous. It’s not rare. But without it, India’s factories, farms, and homes would struggle to function.

What’s next?

If you’re watching India’s chemical industry, don’t just look at the big names. Watch the infrastructure. Watch the power grid. Watch the policy shifts. The next big shift won’t be in drugs or dyes. It’ll be in how India makes its own chlorine.