The year 2025 holds unprecedented promise for Indian entrepreneurs in global chemical exports. The Indian chemical sector stands to benefit greatly from the continuous evolution of global supply chains and the increasing focus on high-performance, eco-friendly chemicals. Indian manufacturers are strategically positioned to capture emerging markets and high-growth export segments, which span from organic and inorganic chemicals to high-value specialty formulations.
This article, based on the April-May 2025 bulletin of CHEMEXCIL, seeks to highlight and offer practical approaches for Indian startups to strategically capitalize on India’s promising export niches, hidden markets, and the global chemical trade.
Performance of India’s Chemical Exports in 2025
In the face of global economic hurdles, the chemical exports of India sustained strong growth. There has been a robust performance in the early 2025 period for dyes, agrochemicals, inorganic chemicals, and specialty products. The growth of these products has been fuelled by strong demand from countries in ASEAN, Latin America, and parts of Africa, although the Western markets have seen stagnant growth. This diversified export footprint showcases the increasing flexibility and responsiveness of Indian chemical manufacturers to different global demands.
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High-Growth Niches in the Chemical Sector
Organic Chemicals
Organic chemicals remain very crucial in the production value of the country’s chemical exports. India’s exports of bulk intermediates and high-purity specialty compounds are a perfect example. Their global demand is growing in the pharmaceutical, textile, and polymer industries. In this case, indian producers having the ability to meet this demand are those that have sustainable production processes and green chemistry capabilities.
Inorganic Chemicals
The global demand for inorganic chemicals of titanium dioxide, aluminium chloride, and caustic soda are also on the rise. Their usage is very important in the manufacture of paints, coatings and paper, and even water treatment. Any startup that can come up with energy-efficient production methods and innovative ways to package the chemicals stands to gain a very high market share.
Specialty Chemicals
Specialty chemicals include all the important dyes and pigments, cosmetic actives, and even agrochemicals. With their targeted market, these chemicals bring in very high profits. These days, many developed and emerging countries have a strong demand for eco-friendly dyes, plant-based cosmetic ingredients, and also biopesticides.
Related: How to Launch a Specialty Chemical Manufacturing Unit in India: Opportunities and Challenges
Untapped and Emerging Export Markets
The U.S. and the EU are very important markets, but the real growth lies in targeting:
- ASEAN: Vietnam, Indonesia, and Thailand are expanding their capabilities in the manufacturing sector, and as a result, the amount of chemicals that they import is increasing.
- Latin America: Brazil, Mexico, and Chile are diversifying their supply chains and increasingly sourcing from Asia.
- Africa: The rapid industrialisation and infrastructure spending in the East and West of Africa is increasing the consumption of chemicals.
- CIS & Eastern Europe: The developing industries are creating a need for agrochemicals, dyes, and other specific chemicals, as well as intermediates.
Related: How Chemical Manufacturing is Adapting to Sustainable Chemical Manufacturing Practices
Forecast for the market and the drivers for demand
It is projected that the global chemical market will grow by 3–4% in the next five years. Other chemical segments like specialty chemicals are expected to grow even faster, at roughly 5–6% a year, supported by:
- The ever-growing demand for high-performance materials in the automotive, electronics, and packaging industries.
- Increasing use of bio and renewable sources of chemicals.
- Manufacturing expansion of pharmaceuticals and nutraceuticals.
- Agricultural development in some emerging nations.
Outline of the manufacturing process: Example, dye specialty production
- Preparation of raw materials: Procure and evaluate the intermediates like aniline derivatives for their quality.
- Chemical Reaction: Run the synthesis at specific temperature and pressure controls.
- Purification: Elimination of the impurities through filtration, crystallisation, or distillation.
- Formulation: Tailor the product for specific end uses.
- Drying and packaging: Change the formulation into the final ascribed product and package for shipping.
- Quality assurance: Verify compliance to the international standards and the clients’ specific requirements.
Strategic actions for startups
For Indian startups targeting the chemical export market, the following action strategies are recommended.
- Choose an identified global market for low competition, niche, high-margin end product, specialty formulation, and non-volatile demand.
- Focus on sustainable and compliant reagent formulation through R&D investments.
- Expand collaboration with overseas distributors and representatives.
- Join international trade fairs to meet potential buyers.
- Comply with global safety and environmental protection measures.
For more information, check out this video
How can NPCS Help Business Owners?
Niir Project Consultancy Services (NPCS) prepares Market Survey cum Detailed Techno Economic Feasibility Reports for setting up new industries or businesses. These reports outline detailed manufacturing processes and the sourcing of raw materials to be used, plant layout designs, and complete financial projections to the last detail. NPCS helps entrepreneurs to assess the viability and profitability of different projects so that the entrepreneur can make the right decisions and implement the projects smoothly.
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Final Words
Startups can strongly position themselves globally by focusing on high-growth niches, entering new markets, and adopting sustainable approaches. Entrepreneurs looking to delve into the chemical export industry can custom-build cost-effective businesses with NPCS’s professional help, navigating the complexities of demand and profitability and responding to market demands.
Data Source: Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL) set up by the Ministry of Commerce & Industry, Government of India.