NEW DELHI : The Indian Government will consider introducing a production-linked incentive (PLI) Scheme for chemicals and petrochemicals to encourage domestic manufacturing of these products, Finance Minister Smt Nirmala Sitharaman said.

“We are in favour of having India becoming a manufacturing hub and, of course, we’ll consider the PLI also for chemicals and petrochemicals,” Sitharaman said at the Summit on Global Chemicals and Petrochemicals Manufacturing Hubs in India organised by the Department of Chemicals & Petrochemicals with the Federation of Indian Chambers of Commerce and Industry on July 27.

Exports, imports

The Government has so far announced 14 PLI schemes – aimed at encouraging local manufacturing and cutting imports – for sectors including telecommunications, electronics, white goods, textiles and pharmaceuticals.

India’s combined exports of chemical and petrochemicals rose 2 percent to $9 billion in FY23 (till September 2022), the minister said. Imports in this sector increased to $13.33 billion.

The Minister said that the importance of the chemicals and petrochemicals sector can be gauged from the fact that it manufactures 80,000 products that directly impact many sectors including construction, packaging, textiles and agriculture.

Referring to specialty chemicals, the minister said it represents 22 percent of India’s overall chemicals and petrochemicals market and is valued at $32 billion.

She said the world is looking at an alternative destination for manufacturing in this sector and India stands a good chance.