“Chemical Industry: Powering India’s Participation in Global Value Chains” Report

“Chemical Industry: Powering India’s Participation in Global Value Chains” Report : Recently, NITI Aayog released a comprehensive report titled “Chemical Industry: Powering India’s Participation in Global Value Chains.”

• Key Highlights : India aims to become a $1 trillion chemical industry by 2040.

o Increase share in Global Value Chains (GVCs) from 3.5% (2023) to 5–6% by 2040, with a potential to reach 12% with reforms.

o Achieve net zero trade balance in chemicals by 2040 (down from a $31 billion deficit in 2023). Generate $35–40 billion in additional exports by 2040.

o India’s chemical industry faces significant challenges, including high import dependence, outdated infrastructure, low R&D investment, and regulatory delays in environmental clearances.

o Additionally, a major skill gap persists, especially in areas like green chemistry and industrial safety.

• About NITI Aayog : Government of India’s premier policy think tank, established in 2015 by a Union Cabinet resolution in place of the Planning Commission. It is neither a Constitutional nor a statutory body.

o Its twin mandate: Oversee the adoption and monitoring of Sustainable Development Goals (SDGs) and promote competitive and cooperative federalism.

o Chairperson: Prime Minister of India

o Governing Council includes the PM, Chief Ministers, Lt. Governors, nominated Union Ministers, Vice Chairperson, full-time members, and domain experts.

• Key Functions : Focuses on inclusive development, especially for vulnerable groups, and integrates national security into economic policy.

o Promotes a knowledge, innovation, and entrepreneurial ecosystem.

o Acts as a platform for resolving inter-sectoral issues and supports evidence-based policymaking.