What are Chemical Parks?
The Union Budget 2026–27 announced India’s first dedicated budgetary support for chemical park infrastructure, proposing a ₹600 crore, challenge-based scheme to help States establish three Chemical Parks.Chemical Parks are planned industrial clusters designed specifically for chemical and petrochemical manufacturing, where multiple units operate together using shared infrastructure and common facilities.The parks will follow a cluster-based, plug-and-play model, offering ready industrial land, common utilities, logistics support, and standard environmental compliance facilities such as waste treatment and safety systems.The initiative builds on successful cluster models such as Plastic Parks, Bulk Drug Parks, and Petroleum, Chemicals and Petrochemical Investment Regions(PCPIRs), which have demonstrated the benefits of shared infrastructure, economies of scale, and faster project execution.The initiative aims to strengthen domestic chemical manufacturing, reduce import dependence, improve supply-chain integration, and enhance India’s global competitiveness in bulk and specialty chemicals.India’s chemical industry is a core pillar of manufacturing, supplying key inputs to agriculture, pharmaceuticals, textiles, automobiles and construction, contributing about 7% to GDP, ranking sixth globally and third in Asia.
