It is 4th in size, next only to (i) iron and steel, (ii) engineering, and (iii) textiles. Here too rapid growth can be witnessed in the fields of organic and inorganic chemicals. These heavy chemicals aid down-stream products such as drugs, dyestuffs, pesticides, plastics, paints etc.

Pesticides which include insecticides, weedicides, fungicides, rodenticides, have become immensely significant for agricultural and for public health purposes. A DDT plant came up in 1954 in Delhi. In 1996-97 turnover of the industry was Rs. 900 billion and accounted for 10% of exports, 20% of customs and excise earnings.

Pharmaceuticals is yet another arena in which India gives tough competition to the third world countries. It is highly diversified and simultaneously vertically structured. The country is nearly self-reliant in basic and bulk drugs. However, imports are still indispensable. But these are compensated for, through exports to a specific degree. In 1996-97 total turnover of the industry was Rs. 12,680 crores.