NITI Aayog Chemical Industry Roadmap for Global Value Chains
Why in the news
NITI Aayog released “Chemical Industry: Powering India’s Participation in Global Value Chains (GVCs)”.
Key facts
- 2040 vision: 12% GVC share, USD 1 trillion output.
- Rank: 6th worldwide, 3rd in Asia; 7% of manufacturing GDP.
- Jobs: 7 lakh skilled jobs possible by 2030.
| Weaknesses | Opportunities |
|---|---|
| MSME-heavy, fragmented clusters | Green chemistry demand |
| China dependence for APIs, Gulf for feedstock | China+1 shift |
| Clearances take 12-18 months | FTAs with UAE, EU, ASEAN |
| 30% skill shortfall | PLI schemes, PCPIRs |
Recommendations
- Upgrade clusters (Paradeep, Dahej, Vizag) with a Chemical Infrastructure Fund.
- Opex subsidy linked to import substitution and exports.
- DST-led academia-industry R&D and technology transfer.
- Simpler environmental clearances via a DPIIT committee.
- More ITIs, courses in polymer science and process safety; chemical clauses in FTAs.
Exam angle
- Target year 2040; clusters: Paradeep, Dahej, Vizag.