TDB provides financial assistance to Indian industries and agencies involved in developing and commercializing indigenous technologies or adapting imported technologies for domestic use. Its goal is to strengthen technology development across short-, medium-, and long-term horizons by supporting innovation and growth. This support aims to close technology gaps, enhance industrial capabilities, and promote the widespread adoption of advanced technologies in India

Since its inception, TDB has facilitated around 27 agreements with various companies in the chemical sector, providing a total funding of ₹ 94 crore. This assistance has empowered Indian Chemical industries to innovate and bring new products to market, addressing vital domestic requirements.

Background

The Indian chemical sector has witnessed remarkable growth between 2014 and 2024, emerging as a significant contributor to the nation's economy. Valued at approximately ₹12.1 lakh crore in 2014, the sector expanded to an estimated ₹22.7 lakh crore by 2024, growing at a compound annual growth rate (CAGR) of 8%. Key drivers of this growth include rising domestic consumption, increasing exports, and government initiatives like 100% FDI under the automatic route and Production Linked Incentive (PLI) schemes. Sub-sectors such as specialty chemicals, agrochemicals, and petrochemicals have shown robust performance, with specialty chemicals growing at a CAGR of 12% and petrochemicals at 11%.

Investment and policy reforms have further bolstered the sector, with cumulative foreign direct investment (FDI) inflows of ₹1.82 lakh crore by 2023. Export earnings nearly doubled during this period, rising from ₹1.65 lakh crore in 2014 to an estimated ₹3.5 lakh crore by 2024. Employment opportunities also grew, with the sector expected to employ 1 million people by 2024. Government initiatives, including the development of Petroleum, Chemicals, and Petrochemical Investment Regions (PCPIRs), have attracted ₹35.14 lakh crore in investments, setting the stage for sustained long-term growth. The industry is poised to reach ₹31.93 lakh crore by 2030, playing a pivotal role in India's economic ambitions.

Technological advancements in the chemical sector are essential for India to maintain its competitive edge and meet the growing demands of industries such as pharmaceuticals, agriculture, and petrochemicals. Innovations in green chemistry, process optimization, and digitalization are crucial to enhancing efficiency and sustainability. For instance, adopting advanced catalysts and process intensification techniques can reduce energy consumption and waste generation in chemical manufacturing. Similarly, the integration of artificial intelligence (AI) and machine learning (ML) in process control and predictive maintenance has the potential to revolutionize productivity and operational reliability across the sector.

India must also prioritize research and development (R&D) to create indigenous technologies tailored to local needs, such as water-efficient agrochemical formulations and biodegradable polymers. Investment in bio-based chemicals and renewable feedstocks is critical for reducing reliance on petroleum-based resources and aligning with global sustainability goals.