The Chemical Industry is one of India’s oldest industries. As a matter of fact, it contributes to a lot of other sectors by supplying products and raw materials. The industry will have a market value of 300 billion USD by 2025. Moreover, the size of the Indian Chemical Industry is USD 108.4 billion. Also, it contributes 2.11% to the economy’s GDP. The chemical industry is the third-largest in Asia. The exports are very strong and almost 34% of the country’s earnings actually come from the chemical industry.
The environment becomes crucial in the chemical industry. The market is shifting to a more environmentally aware R&D process. Therefore, it takes into account all the factors while investing in R&D. This is a big opportunity to explore. Because a lot of different aspects and products are yet to be invented and introduced into the market.
Besides, 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 offers support through the ‘Make in India’ campaign. India also holds a large pool of skilled and cheap workforce in the sector. Therefore, foreign companies coming to India benefit from this. Moreover, the polymer and agrochemical industries present huge growth opportunities. Overall, the Chemical Industry in India is a good investment opportunity as it has large growth potential. In fact, this is majorly due to comparatively lower per-capita consumption and ease of doing business being promoted by the Indian Government.