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India’s Chemical Industry: 35 Business Opportunities for Startups

Niir Writer

India’s chemical industry is bursting at the seams with opportunities for new ventures and entrepreneurs. The global chemical industry itself stands at over $5 trillion and is set to grow further. India’s domestic chemical industry was valued at approximately USD 250 billion in 2024 and is projected to touch USD 300 billion by 2025. India is one of the top 5 chemical-producing countries in the world and accounts for 7% of the national GDP in the chemical industry and ranks 6th in the world in output. India still spends more than $54 billion in chemical industry imports each year, which is a clear indicator of how much the local supply is falling short of the demand. Startups focusing on this gap and the strong domestic demand have a splendid opportunity for new projects.

Initiatives like PLI schemes and the 2025 budget allocation of ₹1.61 lakh crore for the chemical sector aim to strengthen the government’s push to make India a self-reliant manufacturing hub. The government is keen to provide support for locally manufactured intermediate and essential chemicals. In addition, there are emerging niche markets due to the trends of sustainability, specialty chemicals, and green chemistry.

It is best to have a plan in place before moving forward. Detailed feasibility reports, such as those published by NIIR Project Consultancy Services (NPCS), can help with an ideas feasibility assessment. NPCS reports capture all data necessary to evaluate a project’s profitability, such as detailed screenshots of the market, the flow diagram, the processes and in some cases even the required machinery and raw materials, and machinery required. 

With this preparation in place, we can delve into the 35 cutting-edge chemical manufacturing business ideas which can be greatly beneficial to start-ups in 2025 and are bound to be a success in India.

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35 Latest Profitable Chemical Manufacturing Ideas in India

chemical industry

1. Sodium Bicarbonate (Baking Soda)

Baking soda is used in the food and cosmetic industries as well as in the pharmacy. There is an increasing uptake of natural and food-grade baking soda.

2. Soda Ash (Solvay Process)

Widely used in the production of glass and detergents, soda ash is also used in chemicals. There is a huge market for soda ash imports in India.

3. Zeolite 4A (Detergent Grade)

Eco-friendly substitutes for phosphates are used in making detergents and also in water treatment.

4. Carbon Black (N990 Grade)

Widely used in the production of plastic, ink, and rubber.

5. Glycerol Monostearate (Food Emulsifier)

Used widely in processed foods, cosmetics, and the pharmaceutical industry.

6. Ethyl Acetate (Green Route from Ethanol)

Used as an eco-friendly solvent for paints, coatings and adhesives.

7. Phenol and Acetone (Integrated Plant)

High import dependency. Used in laminates, paints, and resins.

8. Methanol (Green or Coal-Based)

Feedstock for fuels, formaldehyde, and acetic acid.

9. Potassium Carbonate

India depends on imports.

10. Caustic Soda – Niche Grades

Basic chemical with steady demand.

11. Toluene Diisocyanate (TDI)

Key in the production of polyurethane foams.

12. Phosphoric Acid

Critical for use in fertilizers and food-grade applications.

View our Handbooks on Chemical Technology (Organic, Inorganic, Industrial), Fine Chemicals

13. Adipic Acid

Base for nylon and polyurethane.

14. Maleic Anhydride

15. Ethylene Vinyl Acetate (EVA)

Used in footwear, packaging, and even in solar panels.

16. Chlorinated Paraffin Wax

Plasticizer and flame retardant.

17. Propylene Oxide

Used for polyols and polyurethane foams.

18. Titanium Dioxide

Used as a white pigment in paints, plastics, and cosmetics.

19. Isopropyl Alcohol (IPA)

Disinfectants and solvents.

20. Sodium cyanide

Used in gold mining and plating.

21. Hydrogen peroxide

Used in the pulp, paper, textiles, and water treatment.

22. Silicone oils and fluids

Used in cosmetics and lubricants and for medical purposes.

23. Epichlorohydrin

Used for epoxy resins.

24. Sulfur Powder

Used for agriculture and rubber vulcanization.

25. Specialty fertilizers and bio-fertilizers

Target precision farming for mercerized horticulture, expanding export farming.

26. Pesticide Strategic Business Units

Domestic and offshore demand is high.

27. Active Pharmaceutical Ingredients and Intermediates

Supply of bulk drugs for pharma companies.

28. Dyes and Pigments

Strong base and scope for development of eco-friendly products in India.

29. Construction Chemicals

Admixtures, waterproofing, and sealants.

30. Water Utility and Treatment Chemicals

Industrial and municipal treatment.

31. Biodegradable Plastics

Includes PLA, PHA and starch-based plastics.

32. Green Hydrogen and Industrial Gases

Hydrogen serves as chemicals feedstock and future fuel.

33. Lithium Battery Chemicals

Used for electric vehicles and storage.

34. Specialty and Fine Chemicals

Includes cosmetic actives, flavors, and fragrances.

35. Projects of Chemical Recycling and Circular Economy

Recycling of plastics, batteries and e-waste into chemicals.

Market Prospects and Government Initiatives

The Indian government is backing the chemical industry with initiatives like Atmanirbhar Bharat, PLI schemes, and PCPIRs (Petroleum, Chemical & Petrochemical Investment Regions).Other initiatives like the “Plastic Parks” and the promotion of green hydrogen are also encouraging advances With the shift in global supply chains to “China+1,” India is poised to emerge as one of the leading suppliers of chemicals.

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Learning from India’s Industrial Tycoons

The astonishing rise of these entrepreneurs demonstrates the value of imagination, creativity, remarkable ambition, and relentless drive in transforming a startup into an industrial titan.

India’s chemical sector is one of the most significant industrial opportunities for the year 2025. The 35 outlined ideas range from traditional chemicals to advanced green initiatives. With comprehensive feasibility studies from NPCS, strategic planning, and government backing, these entrepreneurs can establish ventures that are profitable, sustainable, and scalable.

Now is the perfect time to invest in chemical manufacturing with the robust domestic demand, opportunities in imports, and global possibilities, creating the perfect stage for India’s next wave of success stories in the industrial sector.

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