**Executive Summary:**
In response to Lok Sabha question No. 3305, the Ministry of Chemicals and Fertilizers outlines measures to promote domestic manufacturing of chemicals and petrochemicals under the Atmanirbhar Bharat initiative. In 2024-25, India's chemical and petrochemical imports totaled 57.38 million metric tonnes, valued at Rs. 6,31,939.64 Crores. The department is using Plastic Parks, Centres of Excellence, PCPIRs, and mandatory BIS standards to reduce import dependency and boost local production.
**Key Points / Main Content:**
* **Import Statistics:**
* In 2024-25, India imported 57.38 million metric tonnes of chemicals and petrochemicals, valued at Rs. 6,31,939.64 Crores.
* **Plastic Parks Scheme:**
* Aims to consolidate capacities of the downstream plastic processing industry.
* Intended to increase investment, production, and export, and generate employment.
* 10 Plastic Parks have been approved and are at different stages of implementation.
* **Centres of Excellence Scheme:**
* Provides grants-in-aid to educational and research institutions.
* Focuses on improving existing technology and developing new applications of polymers, chemicals, and plastics.
* Emphasizes modernization, upgradation, and improved product quality.
* 18 Centres of Excellence have been approved.
* **Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs):**
* PCPIR Policy, 2007 aims to attract investment and generate employment.
* Promotes integrated and environmentally friendly development of the chemical and petrochemical sectors.
* Conceptualized as cluster-based regions with common infrastructure and support services.
* Three PCPIRs are notified in Andhra Pradesh (Vishakhapatnam), Gujarat (Dahej), and Odisha (Paradeep).
* These PCPIRs have attracted Rs. 3.4 lakh Crores in investment and generated 3.7 lakh jobs.
* **Bureau of Indian Standards (BIS) Standards:**
* The Department of Chemicals and Petrochemicals is making BIS standards mandatory through Quality Control Orders (QCOs) under the Bureau of Indian Standards Act, 2016.
* Aims to ensure that both domestic manufacturers and overseas suppliers meet BIS parameters.
* Intended to protect public, animal, and plant health, ensure environmental safety, prevent unfair trade practices, and maintain national security.
* QCOs for 72 chemicals and petrochemicals have been notified.
**Impact Analysis:**
* **Domestic Manufacturers:**
* *Impact:* Must adhere to BIS standards as mandated by QCOs to ensure product quality and compliance.
* *Action Required:* Align manufacturing processes to meet BIS parameters for relevant chemicals and petrochemicals.
* **Overseas Suppliers:**
* *Impact:* Must comply with BIS standards to continue exporting chemicals and petrochemicals to India.
* *Action Required:* Ensure that products meet BIS parameters for relevant chemicals and petrochemicals before exporting to India.
* **Educational and Research Institutions:**
* *Impact:* Opportunity to receive grants-in-aid for research and development through the Centres of Excellence scheme, focusing on technological advancements in the chemical and petrochemical sector.
* *Action Required:* Apply for grants under the Centres of Excellence scheme and focus research on modernization, upgradation, and new applications of polymers, chemicals, and plastics.
* **Investors:**
* *Impact:* Potential to invest in Plastic Parks and PCPIRs, benefiting from infrastructure and government support, also to improve product quality.
* *Action Required:* Explore investment opportunities in approved Plastic Parks and PCPIRs, aligning with the government's focus on domestic manufacturing and sector development.
Key Entities Referenced
Atmanirbhar Bharat: An initiative by the Government of India to promote self-reliance and reduce dependency on imports.
Department of Chemicals and Petrochemicals: A department under the Ministry of Chemicals and Fertilizers responsible for the promotion and development of the chemical and petrochemical industries in India.
Plastic Parks Scheme: A scheme implemented by the Department of Chemicals and Petrochemicals to set up need-based Plastic Parks with state-of-the-art infrastructure and common facilities.
Centres of Excellence Scheme: A scheme formulated by the Department of Chemicals and Petrochemicals to promote research and development efforts in the chemical and petrochemical sector.
Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs): Designated regions to attract investment and generate employment in the petroleum, chemical, and petrochemical sectors. Mentioned are Andhra Pradesh Vishakhapatnam, Gujarat Dahej and Odisha Paradeep.
Andhra Pradesh Vishakhapatnam: One of the states in India where Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) have been notified.
Gujarat Dahej: One of the states in India where Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) have been notified.
Odisha Paradeep: One of the states in India where Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs) have been notified.
GOVERNMENT OF INDIA
MINISTRY OF CHEMICALS AND FERTILIZERS
DEPARTMENT OF CHEMICALS AND PETROCHEMICALS
LOK SABHA
UNSTARRED QUESTION No - 3305
ANSWERED ON- 08/08/2025
DOMESTIC PRODUCTION OF HIGH VALUE CHEMICALS
3305. SHRI BAJRANG MANOHAR SONWANE:
SHRI SHRIRANG APPA CHANDU BARNE:
SMT. BHARTI PARDHI:
Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state:
(a) the current value and quantum of chemical and petrochemical imports in the country;
(b) whether any specific high-import value chemical and petrochemicals have been
identified for priority domestic production in under the “Atmanirbhar Bharat” initiative;
(c) if so, the details thereof and the incentives or policy adjustments to encourage domestic
manufacturing of the said identified chemicals and petrochemical to reduce dependency on
import;
(d) the progress made towards making Bureau of Indian Standards (BIS) benchmarks
mandatory for chemicals to ensure quality and prevent unfair trade practices along with the
steps taken by the Government to facilitate the said progress; and
(e) the steps being taken by the Government to make the country self reliant in this sector?
ANSWER
THE MINISTER OF STATE IN THE MINISTRY OF CHEMICALS AND FERTILIZERS
(SMT. ANUPRIYA PATEL)
(a): In the year 2024-25, the country imported total of 57.38 million metric tonnes of Chemicals
and Petrochemicals valued at Rs. 6,31,939.64 Crores.
(b) to (e): To promote domestic manufacturing and reduce dependency on imports, the
Department of Chemicals and Petrochemicals has undertaken the following policy measures :
Plastic Parks: The Department of Chemicals and Petrochemicals has implemented the Scheme
for Setting up of Plastic Parks. The Scheme promotes setting up of need-based Plastic Parks
with requisite state-of-the-art infrastructure and enabling common facilities. The objective isto consolidate and synergize the capacities of downstream plastic processing industry to help
increase investment, production and export in the sector as well as generate employment. 10
Plastic Parks have been approved so far and the same are at different levels of implementation.
Centres of Excellence: With the objective of promoting research and development efforts in
the chemical and petrochemical sector to develop new molecules and technologies, the
Department of Chemicals and Petrochemicals has formulated a scheme for setting up of
Centres of Excellence. The objective of the scheme is to provide grants-in-aid to educational
and research institutions to improve existing technology and promote development of new
applications of polymers, chemicals and plastics. The emphasis of the Scheme is on
modernization and upgradation of existing manufacturing processes as well as improving the
quality of products. So far, 18 Centres of Excellence have been approved under the Scheme.
Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs): Government of
India has notified the PCPIR Policy, 2007 to attract investment and for the generation of
employment in the Petroleum, Chemical and Petrochemical Investment Regions (PCPIRs).
PCPIRs promote the Chemical and Petrochemical sectors in an integrated and
environmentally friendly manner on a large scale. PCPIRs are conceptualised in a cluster-based
approach with common infrastructure and support services to provide a competitive
environment conducive for setting up businesses. At present, three Petroleum, Chemical and
Petrochemical Investment Regions have been notified in the States of Andhra Pradesh
(Vishakhapatnam), Gujarat (Dahej) and Odisha (Paradeep). These PCPIRs have attracted
investment of Rs. 3.4 lakh Crores and have generated employment to 3.7 lakh persons.
Further, Department of Chemicals and Petrochemicals has undertaken steps to make the BIS
Standards mandatory through issuance of Quality Control Orders under the Bureau of Indian
Standards Act, 2016 so that both domestic manufacturers and overseas suppliers meet BIS
parameters in public interest or for protection of human, animal or plant health, safety of the
environment, or prevention of unfair trade practices, or national security. So far, QCOs for 72
chemicals and petrochemicals have been notified in the Gazette by Department of Chemicals
and Petrochemicals.
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