BCG Report Says, India’s Chemical Market Expected to Cross USD 300 Billion By 2030

India’s chemical industry is projected to grow significantly, with its domestic market expected to surpass USD 300 billion by 2030 according to a report by Boston Consulting Group (BCG). The market currently stands near USD 150 billion, indicating substantial expansion potential over the coming years.

The report emphasised that India is entering a major capex super cycle, strengthening prospects for speciality chemical producers. It also highlighted the need for domestic companies to take decisive strategic positions to remain competitive in the next decade.

Domestic Market Expansion and Rising Consumption

The report stated that India’s chemical market is set to more than double by 2030 due to strong domestic demand. It added that sectors such as beauty and personal care, and construction materials are witnessing rapid consumption growth as household incomes rise.

Demand for advanced waterproofing compounds, sealants, and high‑performance coatings has increased across several industries. These consumption trends continue to create additional growth avenues for chemical manufacturers operating in India.

Need For Strategic Scale and Industry Transformation

BCG said that incremental growth is no longer sufficient as the domestic market expands beyond USD 300 billion. The report noted that chemical companies now have greater access to capital, improved capabilities and rising expectations for sustained expansion.

It highlighted that firms must rethink existing value chains, chemistries and sales models to maintain relevance. The report urged companies to focus on achieving meaningful global scale to compete effectively through the 2030s.

Semiconductor Opportunity and Fabrication‑Stage Inputs

India’s semiconductor expansion offers a notable opening for domestic speciality chemical producers. The global semiconductor market is approaching USD 1 trillion with annual growth exceeding 8%, while India is accelerating rapidly from policy planning to execution.

The report noted that fabrication processes rely on more than 40 ultra‑pure chemicals, including solvents, slurries, developers and specialty gases. At present, most of these inputs are imported from Japan, Korea, Taiwan and Mainland China, creating a sizeable gap for domestic suppliers.

Implications For India’s Chemical Industry

The findings emphasised that Indian chemical firms must shift focus from selling volumes to solving specialised chemistry challenges for customers. The report recommended that companies place a single, well‑defined strategic bet aligned with emerging capex cycles to secure long‑term advantages.

It also stated that strategies successful until 2025 may not remain effective given the shifting industry landscape. Firms are therefore encouraged to innovate, differentiate and scale operations to meet evolving global demand patterns.

Read More: Indian Defence Industry Outlook 2026 Amid Global Tensions and Policy Reforms.

Conclusion

BCG’s assessment highlights a strong growth outlook for India’s chemical sector driven by consumption, capex cycles and the semiconductor ecosystem. The industry faces an inflection point requiring long‑term strategic choices from domestic producers.

Opportunities in speciality chemicals, especially in fabrication‑stage inputs, present meaningful prospects for expansion. The sector’s ability to scale, innovate and localise will determine its position in global chemical value chains by 2030.

Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.

Investments in the securities market are subject to market risks, read all the related documents carefully before investing.