ESG and Exports: How Specialty Chemicals Are Powering India’s Next Leap

India’s specialty chemicals industry has quietly become one of the country’s strongest growth engines. Unlike bulk chemicals, specialty chemicals are tailored for specific applications, be it in agrochemicals, personal care, construction, or textiles. Today, this sector is not only fuelling exports but also aligning strongly with ESG (Environmental, Social, Governance) principles, making India a trusted partner for global buyers.

The combination of sustainability, innovation, and rising global demand is paving the way for India’s next big leap in the world market.


Specialty Chemicals: India’s Export Edge
Over the last five years, India’s specialty chemicals sector has consistently grown at around 10–12% annually, reaching nearly $40 billion in 2023. This growth is powered by two main factors:

• Global demand for high-quality, customised chemicals.
• The “China+1” strategy, which has encouraged companies worldwide to diversify supply chains and look to India.

Exports are playing a central role. In FY24, India’s chemical and petrochemical exports touched $20.4 billion, with Gujarat alone contributing nearly half of the shipments. Agrochemicals, dyes, pigments, and personal care ingredients are among the biggest export drivers.


ESG: The Game-Changer for Global Trust
What sets India apart today is not just production scale, it’s how companies are embedding ESG principles into their growth models.

Green Chemistry: Indian players are investing in eco-friendly solutions like biodegradable surfactants, low-carbon processes, and zero-liquid-discharge facilities. 
Technology & Efficiency: Digital tools like AI, IoT, and smart supply chains are being used to cut waste, improve safety, and meet stricter compliance requirements.
Certifications: Adopting global standards such as Responsible Care and environmental codes helps Indian firms build credibility with international buyers.
Industry Platforms: Events like Industrial Green Chemistry World highlight India’s commitment to sustainable innovation, providing global exposure to local companies.

This ESG focus doesn’t just improve reputation. It directly boosts export competitiveness, since global buyers are increasingly prioritising sustainable sourcing.


Recent Developments Boosting Momentum 
The momentum is visible across investments and innovations:

• Safex Chemicals opened Gujarat’s largest specialty chemicals plant in April 2025, strengthening domestic and export supply chains.
• Hindalco acquired U.S.-based AluChem for $125 million to expand its global specialty alumina footprint.
• India’s first water-soluble fertiliser technology was developed locally, reducing dependence on imports from China and positioning the country as a potential exporter.

These developments underline how India is moving towards self-reliance and global competitiveness simultaneously.


Challenges to Overcome
The road ahead is not without hurdles:

• Dependence on imported raw materials (especially from China) creates supply risks.
• ESG compliance raises operational costs.
• The industry needs a stronger pool of skilled talent in areas like R&D, quality control, and sustainability.

But these challenges are opportunities in disguise, pushing the industry to innovate, invest in research, and build stronger domestic ecosystems.


Conclusion
India’s specialty chemicals industry is no longer just about manufacturing. It is about sustainable value creation. By embracing ESG practices, investing in green chemistry, and building export capacity, Indian companies are not only winning global trust but also shaping the future of responsible growth.

As the world looks for greener, more reliable supply partners, India’s specialty chemicals sector is ready to deliver- proving that exports and ESG can go hand in hand to power the nation’s next big leap.