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Chemicals & Petrochemicals

Tamil Nadu is a leader in India’s chemicals and petrochemicals, ranking 3rd nationally in output with over 2,600 factories, $3.4 billion in annual exports, and a diversified manufacturing base. The state's cluster-driven approach and strong policy support attract both domestic and global players, underpinning its status as a chemical industry powerhouse.

Why Tamil Nadu

Top Ranked State

3rd in the country for chemical output and among the world's largest in polymer consumption and production.

Highest Number of Factories

A strong, diversified chemicals ecosystem with over 2,600 units across specialty chemicals, basic and agrochemicals, polymers, and petrochemicals.

Downstream ecosystem

Supported by major downstream industries, a highly skilled workforce, and robust export-oriented clusters such as Manali, Cuddalore, Ranipet, and Tuticorin. Strong growth trajectory in specialty chemicals, dyes, pharmaceuticals, agrochemicals, and plastics.

Deeper Value Chain

A deep agrochemical base linked to the rural economy, leveraging a 45% rural population and a broad agri-horticultural ecosystem, enabling innovative micro-nutrient, specialty fertilizer, and food-chemical projects that are uncommon elsewhere in India.

Key Highlights

Employment Strength

Over 10 lakh people employed directly and indirectly across 8,000+ chemical and plastics MSMEs.

Polymer Leadership

Tamil Nadu consumes 9 lakh tonnes of plastics annually; the plastics industry generates approximately USD 2.77 billion in revenue.

Major Gas Infrastructure

The Ennore - Thoothukudi natural gas pipeline (approx. 1500 km), designed and operated by Indian Oil Corporation (IOC)

•Connects the Ennore LNG terminal to major industrial districts including Thiruvallur, Puducherry, Cuddalore, Nagapattinam, Trichy, Madurai, Ramanathapuram, and Thoothukudi.
•Supplies regasified LNG and natural gas to industries, power plants, and CGD networks.
•Benefiting key chemical and petrochemical clusters in Manali, Cuddalore, Thanjavur, and Thoothukudi.

Strong Agrochemical Base Linked to Rural Economy

Leveraging a 45% rural population and an extensive agri-horticultural base, Tamil Nadu is promoting innovative agrochemical projects such as micronutrient and specialty fertilizer blending clusters, rather than mere bulk production. This blend of eco-friendly agricultural inputs and processed food chemical units is rarely seen elsewhere in the country.