Chemical Industry

//Chemical Industry
Chemical Industry 2019-05-27T17:24:29+05:30

CHEMICAL SECTOR OVERVIEW

Statistics, news & updates: everything you need to know about the Chemical Industry in India

Chemical-Industry-Expertise in India
  • Summary
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats

Summary

The Chemical Industry is one of India’s oldest industries. It contributes to a lot of other sectors by supplying products and raw-materials. The industry is expected to have a market value of 300 billion USD by 2025. Currently, the market is worth 140 billion USD and contributes for 2.11% to the GDP. The chemical industry is the third in Asia and contributes 3.4% to the world’s total industry which is a massive increase from 2.6% in 2009. The exports of this industry are very strong and 34% of the country’s earnings actually come from the chemical industry. The market currently is in a change to a more environmental aware R&D process. The environment becomes more and more important and also in the chemical industry takes it into account while investing in R&D. This is a big opportunity for many parties as a lot of different aspects/products are yet to be invented and introduced into the market. The sector allows 100% FDI and this makes the markets open for investments. The Indian Government supports the Industry in Research & Development, reduced the basic customs duty on several products and gives support through the ‘Make in India’ campaign. India also holds a large pool of skilled and cheap workforce in the sector, so foreign companies coming to India benefit from this. Within Chemicals, the polymer and agro-chemical industries present growth opportunities. Overall, the Chemical Industry of India is a good investment opportunity as it has large growth potential due to comparatively lower per-capita consumption, and ease of doing business being promoted by the Indian Government.

Map- Industry Clusters

Map- Industry Clusters - Chemical

Growth Drivers

  • Global shift towards Asia as chemicals manufacturing hub
  • Export demand and domestic market dependence on Agriculture are key growth drivers for the Chemical Industry
  • The industry sees an annual growth rate of 8-10% and expected to hit $300 bn by 2025
  • Demand for Chemicals is expected to grow 7-8% annually until 2019
  • Government targets to increase Chemical manufacturing share of the GDP to at least 25% until 2025
  • The industry is targeting chemical exports of USD 18 billion by 2020

Key Players in India

International

  • BASF, Shell, Akzo Nobel, Henkel, Dow Chemicals, Mitsubishi Chemical Corp., ADEKA, Syngenta, Croda

National

  • Tata Chemicals, Indian Glycols Ltd., Pidilite Industries, UPL, Vinati Organics, Aarti Industries, Vikas WSP, Gujarat Heavy Chemicals

Market Stats

  • Market size of the Chemicals industry in India stood at $ 163 bn in 2017-18
  • Industry accounts to about 2.11 percent of the country’s GDP and 3.4% of the global chemical industry
  • Highly diversified industry covering more than 70,000 commercial products
  • 34% of India’s export earnings come from its chemical industry
  • Attracted FDI of $14.60 billion from April 2000-March 2018
  • The export of chemicals stood at US$ 12.15 billion during the year 2016-17
Frequently Ask Questions
Talk to Our Experts