The domestic chemical sector in India continues to face pressure from oversupply and dumping of cheaper imports — especially from China — along with uncertainty over global trade policies.

Despite headwinds, some companies remain optimistic: certain speciality-chemical and agrochemical firms are seeing renewed investor interest due to improving margins and global demand for value-added chemicals.

Export side remains a bright spot: chemical exports from India are projected to cross US $30 billion in FY25 — showing recovery after dips, supported by favourable trade policies and duty reductions on key raw materials.

On the global stage, chemical firms with contract development / manufacturing services (CDMO) — especially those aligned with pharma & speciality chemicals — are reported to be doing relatively better compared to commodity-chemical players, as overall demand slows.