Tamil Nadu is the second largest State in chemical production and one of the leading States in plastics, polymer and pharma manufacturing in the country. It has the potential to become the No. 1 hub in the country for the chemicals and petrochemicals industry.
The Tamil Nadu chemical sector is a major contributor to the State’s economy, accounting for around 10% of the State’s GDP. The sector is highly diversified, with a wide range of products, including fertilizers, plastics, pesticides, dyes, pharmaceuticals and inorganic chemicals.
The State Government has categorized specialty chemicals and petrochemicals as sunrise sectors, enabling special and attractive incentives for the industry. There are currently over 2,500 chemical factories in Tamil Nadu. The State has also established a polymer industries park for plastic manufacturing and three petrochemical units are being set up to position Tamil Nadu as a petrochemical investment destination..
Some of the key opportunities for the Tamil Nadu chemical sector:
- Growth in domestic demand for chemicals and petrochemicals
- Increasing exports of chemicals and petrochemicals
- Investment in new chemical and petrochemical projects
- Development of specialty chemicals and petrochemicals
- Creation of downstream industries
Overall, the Tamil Nadu chemical sector is poised for a rapid growth in the coming years. The State’s strong economic fundamentals, supportive government policies and growing domestic and export demand for chemicals and petrochemicals are expected to drive the sector’s growth.