The government will support states in establishing three dedicated chemical parks through a challenge-based scheme featuring cluster-based plug-and-play infrastructure. This initiative enhances domestic chemical production capacity while reducing import dependency for critical industrial inputs.
Strategic Rare Earth Ecosystem Development
Complementing this, four mineral-rich states—Odisha, Kerala, Andhra Pradesh, and Tamil Nadu—will develop dedicated rare earth corridors covering mining, processing, research, and manufacturing. Building on the November 2025 rare earth permanent magnets scheme, these hubs secure supply chains for clean energy, electronics, defense, and electric mobility.
Industrial Self-Reliance Acceleration
The chemical parks adopt ready-to-operate models with shared utilities, waste management, and regulatory facilitation, attracting investments in specialty chemicals essential for pharmaceuticals, agrochemicals, and advanced materials. Together with electronics outlay doubling to ₹40,000 crore and ISM 2.0, they fortify India’s manufacturing competitiveness.
These interconnected reforms create jobs in Tier II/III regions, lower production costs, and position India as a trusted global supplier of strategic materials.
Related
Which states will host the three chemical parks
What is the cluster-based plug-and-play model for chemical parks
How will chemical parks reduce India’s chemical import dependency
What chemicals or products will these parks focus on
Timeline and funding for establishing the chemical parks
