Which Chemicals Are Imported Into India? Top Imports and Key Suppliers

India doesn’t make enough of the chemicals it needs. Every year, the country imports over $50 billion worth of chemical products - and that number keeps rising. From the raw materials for medicines to the additives in plastics and fertilizers, India relies heavily on foreign suppliers to keep its industries running. If you’re in manufacturing, logistics, or even retail, understanding what chemicals are coming into India and where they’re coming from isn’t just useful - it’s essential.

What Chemicals Does India Import the Most?

The top imported chemicals fall into three main buckets: pharmaceutical intermediates, petrochemicals, and specialty chemicals. These aren’t random imports - they’re the backbone of India’s biggest industries.

First up: pharmaceutical intermediates. India is the world’s third-largest producer of generic drugs, but it doesn’t grow the active ingredients itself. Over 70% of the active pharmaceutical ingredients (APIs) used in Indian medicines come from China. That includes things like paracetamol, ibuprofen, and ciprofloxacin precursors. Even though India has hundreds of API manufacturers, most still rely on imported bulk chemicals to finish their products.

Second: petrochemicals. India imports crude oil, but it also imports refined petrochemicals like ethylene, propylene, and benzene. These are the building blocks for plastics, synthetic fibers, and solvents. In 2024, India imported over 12 million metric tons of these basic chemicals, mostly from Saudi Arabia, the UAE, and South Korea. Local refineries can’t produce enough high-purity grades for high-end plastic makers, so they turn to imports.

Third: specialty chemicals. These are the niche compounds that go into paints, adhesives, cosmetics, and electronics. Examples include polyethylene glycol (PEG), titanium dioxide, and sodium lauryl sulfate. Germany, the U.S., and Japan dominate this space. Indian companies import these because they’re too complex or expensive to produce locally at scale. A single bottle of high-purity titanium dioxide for sunscreen can cost 3x more if made in India - so import wins every time.

Where Do These Chemicals Come From?

China is the biggest supplier - by far. In 2024, China accounted for nearly 40% of India’s total chemical imports. That’s more than the next five countries combined. The reason? Low cost, massive scale, and decades of investment in chemical infrastructure. Chinese factories produce APIs, dyes, and solvents at prices Indian producers can’t match.

But India isn’t just buying from China. Saudi Arabia and the UAE supply over 20% of petrochemical imports, thanks to their proximity and low-cost crude. South Korea and Japan are key for high-purity electronic chemicals - like photoresists and etchants used in semiconductor manufacturing. Germany and the U.S. lead in specialty chemicals for pharma and cosmetics.

There’s a shift happening, though. After supply chain disruptions during the pandemic and rising geopolitical tensions, Indian companies are looking for alternatives. Vietnam and Thailand are now being tested as sources for dyes and organic intermediates. Turkey is emerging as a supplier of textile chemicals. Even domestic producers are stepping up - but they’re still catching up.

Why Can’t India Make These Chemicals Itself?

It’s not that India lacks the technical know-how. The country has skilled chemists and engineering talent. The problem is infrastructure, cost, and regulation.

Building a chemical plant requires massive upfront investment - often over $100 million. Then there’s the issue of feedstock. Many chemicals need pure naphtha or ethane, which India doesn’t produce in sufficient quantities. Most refineries focus on fuel, not chemical-grade outputs.

Environmental rules are another hurdle. India’s pollution controls for chemical plants are strict, and compliance adds 20-30% to production costs. In China, enforcement is patchy - so factories can run cheaper and faster. Indian producers often can’t compete on price, even if their quality is better.

Then there’s scale. A single Chinese plant can produce 100,000 tons of paracetamol a year. Most Indian plants max out at 10,000. Without economies of scale, the cost per kilogram stays high.

Who Are the Major Buyers of Imported Chemicals in India?

It’s not just big pharma. The biggest importers fall into five categories:

• Pharmaceutical companies - Sun Pharma, Dr. Reddy’s, Cipla - they import APIs by the ton.
• Plastic and packaging firms - Reliance Industries, UPL, and hundreds of SMEs - they need ethylene and propylene for bottles, films, and containers.
• Fertilizer manufacturers - IFFCO, Krishak Bharati - they import phosphoric acid and urea precursors because domestic production can’t meet demand.
• Cosmetics and personal care brands - L’Oréal India, Patanjali, Mamaearth - they rely on imported surfactants, emulsifiers, and preservatives.
• Electronics and battery makers - Tata Electronics, Amara Raja - they import lithium salts, electrolytes, and high-purity solvents for EV batteries.

Even small businesses - like a paint shop in Pune or a soap maker in Ludhiana - depend on imported chemicals. A single drum of sodium hydroxide or titanium dioxide can make or break their product quality.

How Are Import Trends Changing?

India’s government wants to cut reliance on China. The Production Linked Incentive (PLI) scheme for bulk drugs and specialty chemicals now offers up to 15% cashback on production costs. Over 50 new API plants are in the pipeline, mostly in Gujarat and Maharashtra.

But progress is slow. It takes 3-5 years to build a chemical plant. Even with subsidies, most investors still prefer to import - it’s faster, safer, and cheaper in the short term.

Another trend: more companies are shifting from bulk imports to local blending. Instead of importing finished products, they bring in concentrated chemicals and mix them in India. This cuts duties and gives them more control over quality. For example, a company might import concentrated perfume base from France and dilute it with local ethanol.

Also, sustainability is becoming a factor. European buyers now demand proof that imported chemicals aren’t made using toxic solvents or child labor. Indian importers are starting to ask for ISO 14001 and REACH compliance certificates - something they didn’t care about five years ago.

What This Means for Businesses

If you’re running a chemical-dependent business in India, here’s what you need to know:

• Don’t rely on one supplier. If China blocks exports, your production stops. Diversify - look at Turkey, Vietnam, or even local alternatives.
• Track customs data. The Directorate General of Trade Remedies publishes monthly import trends. Use it to spot price drops or supply shortages.
• Invest in local blending. It’s cheaper than importing finished goods and gives you flexibility.
• Build relationships with logistics partners. Chemical shipments need special handling. A bad freight agent can ruin a whole container.
• Plan for longer lead times. Global shipping delays are still common. Keep 45-60 days of buffer stock.

And if you’re thinking of starting a chemical business in India? Don’t try to compete with China on price. Instead, focus on niche markets - organic cosmetics, eco-friendly solvents, or high-purity reagents for labs. That’s where the real opportunity lies.

What’s Next for India’s Chemical Imports?

By 2030, India’s chemical import bill could hit $80 billion. But that doesn’t mean the country will stay dependent. With new PLI schemes, better infrastructure, and growing domestic demand, local production is slowly rising.

Still, for the next decade, imports will remain critical. The key isn’t to stop imports - it’s to make them smarter. Choose reliable suppliers. Diversify sources. Understand the quality specs. And always, always have a backup plan.

India’s chemical supply chain is complex, but it’s not broken. It just needs more awareness - and better planning - from the people who use these chemicals every day.