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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:

• Capital subsidy ranging from INR 30 lakhs to INR 2.25 crores
• Concession on the stamp duty
• Up to 25% subsidy (limited to INR 30 lakhs) under environmental promotion infrastructure
• Exemption from electricity tax
• Land allotment at 50% of the actual cost

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.