From manufacturing hub to global influence, ETManufacturing

Specialty chemistries account for 20% of total global chemistries worth $4 trillion, with India’s market projected to grow to $64 billion by 2025, indicating its strategic importance in the industry growth.India is emerging up as a key player in the global specialty chemistries landscape. India has become a manufacturing hub as global supply chains are undergoing rebalancing and industry demand becoming more agile, sustainable and in search of innovative partners.

This transformation is a result of deliberate policy support, a maturing innovation ecosystem and a growing recognition of India’s capabilities in complex chemistries and collaborative development. At this point, the debate is not about whether India will lead, but rather about the specific ways in which it will influence and redefine the future landscape of specialty chemistries.

From volume to value approach

Today, specialty chemistries account for 20% of total global chemistries worth $4 trillion, with India’s market projected to grow to $64 billion by 2025, indicating its strategic importance in the industry growth.

India’s chemistries industry used to be all about churning out huge volumes, mostly for local markets or low-cost exports. That approach is fading fast. Now, there is a pivot towards specialized, high-value products for pharma, electronics, personal care, agrochemicals, and even automotive manufacturing. Companies are no longer following the playbook of ‘just produce more’ rather zeroing in on innovation and performance. It is a shift from pure volume to creating real value, and honestly, it’s the only way to stay ahead in today’s market.

From process to platform approach

India’s proficiency in cutting-edge chemistry is the focal point of this transition. Not that long ago, reactions like fluorination, bromination, hydrogenation – even phosgenation – were seen as complicated, maybe even risky. Fast forward to now, and Indian firms are managing these processes with precision and safety, that’s honestly impressive. Whether it is custom synthesis, advanced intermediates, or full-on CDMO services, these companies are consistently delivering value that stands out in the market.India’s strategic leap in specialty chemistries
More than that, they are playing strategic roles. Customers are not no longer outsourcing tasks –they are working hand-in-hand with Indian partners to develop products, improve processes, and speed up time-to-market. It is a shift from transactional relationships to long-term collaboration, and honestly, it is paying off for everyone involved.

Leveraging the C+1 momentum

India is emerging as a key beneficiary of global supply chain diversification. The adoption of ‘C+1’ strategy by multinationals to reduce geographic dependence, has increased India’s standing as a reliable manufacturing partner.Indian companies are evolving from secondary suppliers to become the trustworthy global partners through proficiency demonstrated in complex chemistry, strong intellectual property adherence and robust export infrastructure. The goal should be to strengthen customer relationships and boost responsiveness by setting up application development centres, regional sales offices, and strategically placed warehouses is the move. This is not just about logistics – it is about cementing a real commercial presence in key markets. Customers notice when we are local and accessible, and that connection can elevate our global reputation.

R&D, sustainability & digitalisation

Sustainability, circular economy practices, and R&D are now fundamental requirements. In India, R&D has become a central driver of organizational growth and industry advancement. The focus has shifted from incremental enhancements to the creation of novel chemistries, refined formulations, and customized solutions tailored to client-specific needs.

Digitalization is changing how companies operate – higher productivity, less downtime, and better visibility across supply chains. Digital twins, predictive modelling, and AI-driven analytics are quickly turning into must-haves for any business that wants to keep up. Most companies are still figuring things out, but let’s face it: if you’re not investing in these tools soon, you’re probably going to fall behind.

In line with international regulatory requirements and scientific advancements, businesses are exploring plant-based raw materials, recyclable solvents and cleaner production methods. This move towards innovation creates a solution-focused mindset.

Future for India’s specialty chemistries sector

India must deepen its commitment to research and development, promote innovation through the creation of new molecules and strengthen the intellectual property frameworks.

In order to address pricing pressures, raw material volatility and stricter environmental norms, companies are required to improve operational agility. To maintain a competitive edge amidst fluctuating markets, it is essential to maximize asset utilization, enhance batch yields, exercise prudence in capital expenditures, and embrace digitalization within plant operations.

Selecting high-potential segments, along with targeted CDMO services, is essential for capturing meaningful growth opportunities in the current landscape. Strategic mergers and acquisitions give companies instant access to new markets and the latest technologies.

India is on the right path to establish itself as a global leader if we get the playbook right.

• Published On Aug 20, 2025 at 04:42 PM IST

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