India’s Chemical Industry: Sector Overview
In India, the Chemicals and Petrochemicals sector is worth $178 billion.
The Indian chemical industry refers to the production of chemicals and chemical products in India. The major areas of chemical production are petrochemicals, agrochemicals, pharmaceuticals, polymers, industrial gases, etc. The Indian Chemical Industry is mainly driven by India’s domestic market and internal demand, although it also exports globally. It has grown over the years as an important cog in the machinery of India’s economy, as it contributes substantially to the export earnings of the country. Read more to find out more about this diverse sector in India.
India’s chemical sector is extremely diverse, with over 80,000 commercial items. Bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers are some of the categories. India benefits from economies of scale due to its closeness to the Middle East, which is the world’s largest supplier of petrochemical feedstock.
Visit this Page for More Information: Start a Business in Chemical Industry Projects
India is a significant worldwide dye supplier, accounting for roughly 16% of global dyestuff and dye intermediate production. Except for a few hazardous substances, India’s chemical sector has been de-licensed. The Chemicals and Petrochemicals sector will benefit from state-of-the-art infrastructure provided by upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and Plastic parks.
- By 2025, the global market for chemicals and petrochemicals is expected to reach $300 billion.
- India ranks 11th in global chemical exports (excluding pharmaceutical items) and 6th in global chemical imports (excluding pharmaceutical products)
- In the fiscal year 2021-22 (up to October 2021), combined exports of Major Chemicals and Major Petrochemicals climbed to INR 81.95/- thousand crores from INR 57.21/- thousand crores, while imports increased to INR 94.53/- thousand crores from INR 50.09/- thousand crores.
- Between 2020 and 2025, demand for chemical goods is predicted to expand at a rate of about 9% per year.
- More than 2 million people work in India’s chemical sector.
- Fertilizer production (weight: 2.63 percent) grew by 0.5 percent in July 2021 over July 2020.
- In the chemicals sector, 100 percent FDI is allowed under the automatic approach (except in the case of certain hazardous chemicals)
For further details, please refer to FDI Policy
Read Similar Articles: Chemical Industry
Situation in the Industry
In India, the Chemicals and Petrochemicals business is worth roughly $178 billion dollars and is predicted to reach $300 billion dollars by 2025.
- Major Chemicals output climbed by 23.62 percent to 73.04 lakh tonnes in 2021-22 (up to October-2021) compared to 59.08 lakh tonnes in the previous year’s similar period.
- Major Petrochemicals production climbed by 11.85 percent to 257.44 lakh tonnes in 2021-22 (up to October-2021) compared to 230.15 lakh tonnes in the previous year’s similar period.
- Chemical production increased by 23.62 percent in 2021-22 (up to October 2021) over 2020-21 (up to October 2020), with large increases in all sub-sectors–
- Chemicals containing alkali – 25.98 percent
Related Feasibility Study Reports: Chemicals (Organic, Inorganic, Industrial) Projects
- 20.92 percent inorganic compounds
- Organic compounds make up 10.4 percent of the total.
- Pesticides and insecticides accounted for 30.72 percent of the total.
- Dyes and Pigments accounted for 51.06 percent of the total.
- From FY 2019 to FY 2023, petrochemical demand is predicted to expand at a CAGR of 7.5 percent, while polymer demand is expected to grow at an annual rate of 8%.
- India’s agrochemicals industry is predicted to increase at an annual rate of 8%, reaching $4.7 billion by FY25.
- Specialty chemicals account for 22% of India’s total chemicals and petrochemicals market. In 2019-22, demand for specialised chemicals is predicted to grow at a 12 percent compound annual growth rate (CAGR).
Read our Books Here: Chemical Technology (Organic, Inorganic, and Industrial), Fine Chemicals
GROWTH DRIVERS
- Rising disposable income, population age, urbanisation, and increasing penetration and demand from rural markets
- Shift in production and consumption towards Asian and Southeast Asian countries in all sectors, leading to increased demand for Chemicals and Petrochemicals
- Shift in consumer preferences toward a healthier lifestyle and environmentally friendly products, leading to increased demand for Chemicals and Petrochemicals
- Potential to produce $111 billion in chemical goods for domestic use by 2023.
- Under the Atmanirbhar Bharat Abhiyaan, there is a Production-Linked Incentives scheme for the manufacturing of Advance Cell Chemistry Batteries.
PLI (Production-Linked Incentives) Program
The Union Cabinet, led by Prime Minister Shri Narendra Modi, has approved the introduction of the Production-Linked Incentive (PLI) Scheme in Advance Chemistry Cell Batteries for Improving India’s Manufacturing Capabilities and Exports – Atmanirbhar Bharat.
Watch other Informative Videos: Chemicals (Organic, Inorganic, and Industrial)
TRENDS IN THE INDUSTRY
Agrochemicals: The agrochemical sector in India is expected to increase at an annual rate of 8-10% till 2025.
Petrochemicals: Over the next decade, India’s domestic demand for petrochemicals is predicted to expand at an annual rate of 8%. Furthermore, during the next five to seven years, petrochemical capacity is expected to increase by more than 40%.
Fertilizers: The Indian fertiliser business was worth over $64 billion in FY18. From FY19 to FY23, the market is estimated to increase at a CAGR of 13% to $138 billion.
Specialty Chemicals: Specialty chemicals make up more than half of India’s overall chemical exports.
Download PDF: India’s Chemical Industry: Sector Overview
Some Useful Links:
Government Ministry/ Department
Industry Associations
- Alkali Manufacturers Association of India
- Chemicals & Petrochemicals Manufacturers Association
- Crop life India Dye Manufacturers Association of India
- Indian Chemical Council
- Indian Speciality Chemical Manufacturers Association
- Organization of Plastic Processors of India
- The All India Plastic Manufacturers’ Association
- Start a Business in Asia
- Start a Business in Potential Countries for Doing Business
- Best Industry for Doing Business
- Business Ideas with Low, Medium & High Investment
- Looking for Most Demandable Business Ideas for Startups
- Startup Consulting Services
- Start a Business in Africa
- Start a Business in India
- Start a Business in Middle East
- Related Videos
- Related Books
- Related Projects
- Related Market Research Reports
𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬
NIIR PROJECT CONSULTANCY SERVICES, DELHI
An ISO 9001:2015 Company
ENTREPRENEUR INDIA
106-E, Kamla Nagar, Opp. Mall ST,
New Delhi-110007, India.
Email: npcs.ei@gmail.com
Tel: +91-11-23843955, 23845654, 23845886
Mobile: +91-9097075054, 8800733955
Website: https://www.entrepreneurindia.co