The Chemical Industry in India- WorldOfChemicals

Chemical Industry in India: An Overview

Chemical Industry In India

The Indian Chemical Industry is an integral part of the Economy. In all different ways it’s a part of our lives. We are inextricably linked to the industry- be it be the furniture we use, cars we drive, garments we put on or the drugs we consume. Indian Chemical Industry is both capital as well as knowledge intensive. This industry is playing important role in meeting up with basic needs of the people and improving their lives.


Based on composition and end use, chemicals can be divided into following broad categories:


1. Bulk Chemicals: This segment includes basic organic (methanol, acetic acid, phenol etc.) and inorganic chemicals (also known as alkali chemicals, caustic soda, chlorine and soda ash). 


2. Specialty Chemicals: Also known as performance chemicals are high value compounds with low volume. Paints and adhesives, electronic and oilfield chemicals are few of the specialty chemicals examples.


3. Agrochemicals: Chemicals important for agriculture crops to protect against insecticide and pesticides.


4. Petrochemicals: Chemicals derived from petroleum are petrochemicals. Two common classes of petrochemicals are olefins and aromatics.


5. Fertilizers: Fertilizers are organic or inorganic compounds required for the growth of the plants. Manufacturing raw materials for agriculture in fertilizer sector, is the foremost occupation of India.


Industry Scenario and Market Size


Indian chemical industry is vastly diversified with more than 80,000 commercial products in the market. Chemical industry in India is delicensed apart from for few of the hazardous chemicals.


The market size of chemical industry of India came up at $ 163 billion for FY 2017-18 and is expected to reach $ 304 billion by 2025, with growth in demand for chemical products by approx. 9% per annum in coming next five years.

  • India is the third largest producer of chemicals by volume in Asia and sixth largest producer of chemicals in the world.
  • India has 3.40% of contribution towards the global chemical industry along with 10.30% of chemical products exports share, making it to rank on 14th in exports globally (excluding pharma products).
  • India is the third largest consumer of polymer, and fourth largest producer of agrochemicals in the world.
  • India accounts for approx. 16% of the world dyestuff and dye intermediates production, making it a strong dye supplier globally.
  • The specialty chemicals market in India has witnessed 14% growth in past 5 years and is expected to reach $70 billion in market size by 2020.
  • Total chemicals and petrochemicals production in India were $7,44,607.71 during the year 2017-18. The petrochemical market is expected to reach $ 100 bn over the next 5 years at a CAGR of 10%.
  • Alkali chemicals have the largest share with approx. 69% share in the total production globally.
  • Indian Chemical Industry has created employment opportunities for more than 2million people.
  • FDI of 100% is allowed in the chemicals sector of India under the automatic route, except for few of the hazardous chemicals.


Major Investors in Chemical Industry of India

  • Mitsubishi Chemicals
  • BASF
  • AkzoNobel
  • Dupont
  • Syngenta
  • DyStar
  • Henkel
  • Rhodia
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