Maharashtra is preparing to introduce a dedicated Chemical Sector Policy by the end of October, as the state looks to attract fresh investments and strengthen its position as a leading global hub for chemical manufacturing. The government is also exploring chemical parks spread across 2,500 to 5,000 acres in Palghar, Raigad and Ratnagiri.
The announcements were made at ASSOCHAM MahaChem 2026 in Mumbai, where senior government officials, industry leaders, investors, researchers and startups discussed the future of Maharashtra’s chemical sector.
Dr. P. Anbalagan IAS, Principal Secretary, Industries, Investment and Services Department, Government of Maharashtra, said the proposed policy will address the specific requirements of the chemical industry while supporting emerging sectors such as bioplastics, biotechnology and biomanufacturing.
According to him, the government is evaluating locations in Palghar, Raigad and Ratnagiri for large chemical parks. Along with infrastructure development, the state is also focusing on faster approvals and improving the ease of doing business.
Another major proposal is the ₹1,000-crore Maharashtra Industries and Investment Fund, which will support research and development, technology readiness and innovation. The fund is expected to strengthen financing opportunities for new technologies and businesses and help the state move towards higher-value chemical manufacturing.
Praveen Pardeshi IAS, Chief Economic Advisor to the Chief Minister and CEO of the Maharashtra Institution for Transformation (MITRA), said the chemical and pharmaceutical sectors will play a critical role in Maharashtra’s ambition of becoming a US$1 trillion economy.
He highlighted the importance of competitive utility costs, reliable energy access and sustainable water management for maintaining the state’s industrial competitiveness. According to him, faster economic growth will also require an ecosystem capable of attracting greater private investment.
Chief Minister Devendra Fadnavis invited investors to consider Maharashtra for their next major ventures. He said the state is working to create a pro-business environment through the MAITRI single-window platform, faster clearances and policy incentives.
The Chief Minister also described the chemical and petrochemical sector as a key engine of Maharashtra’s US$1 trillion economy vision. The government, he said, will continue to provide financial, logistical and administrative support to promote innovation-led and sustainable industrial growth.
Maharashtra’s $22-Billion Chemical Opportunity
The ASSOCHAM-EY report, titled ‘Maharashtra: Fuelling India’s Trillion-Dollar Chemical Vision’, released at MahaChem 2026, estimates Maharashtra’s chemical sector at around US$22 billion. The state has more than 3,600 chemical factories and 13 designated chemical zones.
The sector contributes around 19% of India’s chemical sector GVA and 17% of the country’s chemical exports. It also accounts for approximately 13.5% of Maharashtra’s industrial output and provides employment to around 3 lakh people.
The report identifies major opportunities in specialty chemicals, battery materials, electronic chemicals, advanced polymers, specialty coatings, pharmaceutical and agrochemical intermediates, bioplastics and other emerging segments.
Milind Hardikar, Chair of the ASSOCHAM Maharashtra State Council, said the sector is entering a critical phase where growth must move beyond capacity expansion towards specialty chemicals, high-value derivatives and sustainable green chemistry.
MahaChem 2026 focused on investment opportunities, innovation, infrastructure, logistics, sustainable manufacturing, standardisation and certification. The discussions highlighted the need for stronger coordination between government, industry, research and investors to position Maharashtra as a globally competitive destination for next-generation chemical manufacturing.
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