India studying impact of US tariffs on Indian chemicals, petrochemicals sector, says official

Industry experts said the tariff increase substantially raises costs for Indian chemical exports to the US, likely reducing demand for speciality chemicals and intermediates.

Indian petrochemical exports to the US, valued at approximately USD 4 billion in 2024, may see reduced demand, though some petroleum oil sub-segments might be exempt, softening the impact.

The US tariffs on Chinese chemicals have also triggered concerns about dumping, as Chinese firms facing economic slowdown and surplus capacity may flood India and other global markets with cheaper products, potentially depressing global chemical prices, they added.

Earlier, at a brainstorming session, Verma emphasised fostering long-term development of the Indian chemical and petrochemical sector, including discussions on infrastructure development specifically tailored for the chemical industry.