India’s specialty chemicals sector is standing at a critical crossroads. A new report jointly released by PwC and Assocham titled “Indian Chemical Industry: Enablers to Make India a Growth Hub for Chemicals” makes a compelling case for urgent government intervention. According to the study, to truly anchor specialty chemical supply chains in India, the Centre must roll out attractive incentives and enforce safeguard duties. The report points out that while the domestic chemicals industry shows immense potential for growth, it is grappling with multiple challenges. Chief among them is the increasing commoditisation of specialty chemicals, a trend that is steadily squeezing profit margins. As competition intensifies globally, India’s manufacturers find themselves pressured to offer lower prices, often at the cost of quality and innovation. But that’s not the only headwind. Adding a layer of complexity is the impact of reciprocal tariffs, particularly those imposed by the United States. The PwC-Assocham report notes that these tariffs have disturbed cost structures and are beginning to weigh down the global competitiveness of Indian chemical exports. As these changes ripple through supply chains, companies are facing supply disruptions and rising input costs. It’s a situation that demands strategic action if India is to emerge stronger in the global specialty chemicals market. The solution, according to the report, lies in a multi-pronged approach. First and foremost, India must focus on becoming cost-competitive in the global arena. This involves a serious rethinking of supply chain strategies, streamlining operations, reducing inefficiencies, and perhaps most importantly, tapping into export subsidies. By offering well-calibrated incentives, the government can empower Indian chemical companies to match and surpass global peers in both pricing and quality.