Chemical Industry

//Chemical Industry
Chemical Industry 2018-11-05T13:21:36+05:30


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

  • Summary
  • Industry Clusters
  • Growth Drivers
  • Key Players
  • Market Stats


The Chemical Industry is one of India’s oldest industries. It contributes to a lot of other sectors by supplying products and raw-materials. Currently, India is the 3rd largest chemical and petrochemical producer in Asia and the 7th largest in the world. With growing demand from chemical end users, the Industry is further set to grow. 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 the biggest growing 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.

Please see our latest Chemical Industry News here!

Map- Industry Clusters

Map- Industry Clusters - Chemical

Growth Drivers

  • Global shift towards Asia as chemicals manufacturing hub
  • Indian chemical industry has the potential to grow to $226 billion by 2020
  • Export demand and domestic market dependence on Agriculture are key growth drivers for the Chemical Industry
  • Demand for Chemicals is expected to grow 7-8% annually until 2019
  • Target of Government to increase Chemical manufacturing share of the GDP to at least 25% until 2025

Key Players in India


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


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

Market Stats

  • Current market size is $145 billion, contributing about 3% of the country’s GDP
  • Accounts to 3% of the global chemical market
  • Specialty chemical’s market size is expected to grow to $68.7 billion by 2020
  • India is the 3rd largest polymer consumer
  • India is the world’s 3rd largest producer of agro chemicals and exports around 50% of the agro-chemicals production
  • Colorant industry valued at $6.8 billion, accounts to 15% of the global industry
  • Attracted FDI of $11.90 billion from April 2000-March 2016
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