New Delhi, Aug. 31 -- The government may soon offer policy support and financial incentives to encourage geographic diversification in India's chemical exports, according to two people aware of the development. The proposed measures, part of an effort to reduce dependence on the US market, will focus on helping exporters identify and access new markets while strengthening India's integration and position in global chemical value chains, these people added.

The US accounts for 18% of India's chemical exports, underscoring the need to broaden the export base and reduce concentration in a single market, the first person cited above said. Encouraging greater exports across Europe, Southeast Asia, West Asia, Africa and Latin America could hel...