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Tamil Nadu is the second-largest chemical-producing state in India, only after Gujarat. Tamil Nadu is one of the leading exporters of basic chemicals in the state. The chemical industry in the state has been growing at a CAGR of more than 10% over the past few years. Tamil Nadu is home to more than 2,500 chemical industries spread across the state. There are more than 8,000 MSMEs in the polymer industry in the state. The state of Tamil Nadu has huge potential to become the largest hub for chemical manufacturing in the country. Strategic location with proximity to international markets with world-class ports have helped the state to become a major player in the chemical industry in India
The Government of Tamil Nadu has been taking a lot of measures to attract investments into the chemical industry and increase the state’s share in the national chemical output. The state has dedicated chemical clusters in Salem-Erode, Chennai-Tiruvallur, Kanchipuram, Tanjavur-Pudukkottai, Thoothukudi and Madurai.
Some of the incentives from the state government towards the chemical industry:
The Government of India recently approved the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This decision is expected to boost the chemical industry across the country, including Maharashtra. Apart from the PLI Scheme, there are several other schemes for the chemical industry such as Chemicals Promotion Development Scheme, Scheme for setting up Centre of Excellence, Export Promotion Schemes, etc. through which entrepreneurs can avail benefits from the government.
The chemical sector in Tamil Nadu is highly diversified with several subsectors such as agrochemicals, speciality chemicals, dyes, polymers, pigments, paints, etc. with great scope for investments. Nippon Paint, BASF, IFF, Dow Chemical, TATA Chemicals, etc. are some of the major players in the chemical industry in India. Given the diverse nature of the chemical industry, the opportunities for small and medium scale enterprises across the value chain are huge in Tamil Nadu.However, entering into the chemical industry and starting chemical manufacturing is rather difficult for MSMEs due to a lack of technical expertise.....
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