{"id":10428,"date":"2022-04-16T12:07:09","date_gmt":"2022-04-16T12:07:09","guid":{"rendered":"https:\/\/niir.org\/blog\/?p=10428"},"modified":"2022-04-16T12:07:09","modified_gmt":"2022-04-16T12:07:09","slug":"indias-chemical-industry-sector-overview","status":"publish","type":"post","link":"https:\/\/www.niir.org\/blog\/indias-chemical-industry-sector-overview\/","title":{"rendered":"India&#8217;s Chemical Industry: Sector Overview"},"content":{"rendered":"<blockquote><p><strong>India&#8217;s Chemical Industry: Sector Overview<\/strong><\/p>\n<p><em>In India, the Chemicals and Petrochemicals sector is worth $178 billion.<\/em><\/p><\/blockquote>\n<p>The Indian <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/niir.org\/blog\/want-start-business-chemical-industry\/\">chemical industry<\/a> <\/span>refers to the production of chemicals and chemical products in India. The major areas of chemical production are <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/npcsblog.wordpress.com\/2018\/02\/20\/list-of-business-ideas-for-production-of-petroleum-and-petroleum-products-oil-gas-project-opportunities-petrochemicals-petroleum-by-products-petrochemical-feedstocks-production-of-greases\/\">petrochemicals<\/a>, <a style=\"color: #0000ff;\" href=\"https:\/\/niir.org\/blog\/books-on-agrochemicals-pesticides-insecticides-fungicides\/\">agrochemicals<\/a><\/span>, pharmaceuticals, polymers, <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/project-and-profile-listing?CatId=57&amp;SubCatId=57&amp;CatName=Industrial%20Gases\">industrial gases<\/a>,<\/span> etc. The Indian Chemical Industry is mainly driven by India&#8217;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&#8217;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.<\/p>\n<p>India&#8217;s <a href=\"https:\/\/niir.org\/blog\/6526-2\/\"><span style=\"color: #0000ff;\">chemical<\/span> <span style=\"color: #0000ff;\">sector<\/span><\/a> is extremely diverse, with over 80,000 commercial items. Bulk chemicals, <a href=\"https:\/\/www.entrepreneurindia.co\/page\/speciality-chemicals-manufacturing\/\"><span style=\"color: #0000ff;\">specialty chemicals<\/span><\/a>, 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&#8217;s largest supplier of petrochemical feedstock.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Visit this Page for More Information: <\/strong><span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/chemical-industry-projects\/\">Start a Business in Chemical Industry Projects<\/a> <\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p>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&#8217;s chemical sector has been de-licensed. The Chemicals and Petrochemicals sector will benefit from state-of-the-art infrastructure provided by upcoming <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/petroleum-industry\/\">Petroleum<\/a><\/span>, Chemicals and Petrochemicals Investment Regions (PCPIRs) and Plastic parks.<\/p>\n<ul>\n<li>By 2025, the global market for chemicals and petrochemicals is expected to reach $300 billion.<\/li>\n<li>India ranks 11th in global chemical exports (excluding pharmaceutical items) and 6th in global chemical imports (excluding pharmaceutical products)<\/li>\n<li>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.<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<figure class=\"wp-block-embed wp-block-embed-youtube is-type-video is-provider-youtube epyt-figure\"><div class=\"wp-block-embed__wrapper\"><iframe  id=\"_ytid_54539\"  width=\"750\" height=\"421\"  data-origwidth=\"750\" data-origheight=\"421\" src=\"https:\/\/www.youtube.com\/embed\/KX_c2CoeyLo?enablejsapi=1&autoplay=0&cc_load_policy=0&cc_lang_pref=&iv_load_policy=1&loop=0&rel=1&fs=1&playsinline=0&autohide=2&theme=dark&color=red&controls=1&disablekb=0&\" class=\"__youtube_prefs__  no-lazyload\" title=\"YouTube player\"  allow=\"fullscreen; accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen data-no-lazy=\"1\" data-skipgform_ajax_framebjll=\"\"><\/iframe><\/div><\/figure>\n<p>&nbsp;<\/p>\n<ul>\n<li>Between 2020 and 2025, demand for chemical goods is predicted to expand at a rate of about 9% per year.<\/li>\n<li>More than 2 million people work in India&#8217;s chemical sector.<\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/npcsblog.wordpress.com\/2019\/03\/26\/books-on-agrochemicals-pesticides-insecticides-fungicides-herbicides-biofertilizer-and-vermicompost-manufacturing\/\">Fertilizer production<\/a> <\/span>(weight: 2.63 percent) grew by 0.5 percent in July 2021 over July 2020.<\/li>\n<li>In the chemicals sector, 100 percent FDI is allowed under the automatic approach (except in the case of certain hazardous chemicals)<\/li>\n<\/ul>\n<p>For further details, please refer to <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.investindia.gov.in\/foreign-direct-investment\"><strong>FDI Policy<\/strong><\/a><\/span><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Read Similar Articles: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/npcsblog.wordpress.com\/category\/chemical-industry\/\">Chemical Industry<\/a><\/span><\/strong><\/p>\n<p><strong><em>\u00a0<\/em><\/strong><\/p>\n<p><strong>Situation in the Industry<\/strong><\/p>\n<p>In India, the Chemicals and Petrochemicals business is worth roughly $178 billion dollars and is predicted to reach $300 billion dollars by 2025.<\/p>\n<ul>\n<li>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&#8217;s similar period.<\/li>\n<li>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&#8217;s similar period.<\/li>\n<li>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\u2013<\/li>\n<li>Chemicals containing alkali \u2013 25.98 percent<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Related Feasibility Study Reports: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/niir.org\/profile-project-reports\/profiles\/chemicals-organic-inorganic-industrial-projects\/z,,2e,0,a\/index.html\">Chemicals (Organic, Inorganic, Industrial) Projects<\/a><\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<ul>\n<li>20.92 percent inorganic compounds<\/li>\n<li><a href=\"https:\/\/niir.org\/blog\/the-complete-book-on-organic-farming-and-production-of-organic-compost-2nd-revised-edition\/\"><span style=\"color: #0000ff;\">Organic compounds<\/span><\/a> make up 10.4 percent of the total.<\/li>\n<li><a href=\"https:\/\/npcsblog.wordpress.com\/2022\/02\/09\/the-complete-technology-book-on-pesticides-insecticides-fungicides-and-herbicides-agrochemicals-with-formulae-manufacturing-process-machinery-equipment-details-2nd-revised-edition\/\"><span style=\"color: #0000ff;\">Pesticides and insecticides<\/span><\/a> accounted for 30.72 percent of the total.<\/li>\n<li>Dyes and Pigments accounted for 51.06 percent of the total.<\/li>\n<li>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%.<\/li>\n<li>India&#8217;s agrochemicals industry is predicted to increase at an annual rate of 8%, reaching $4.7 billion by FY25.<\/li>\n<li>Specialty chemicals account for 22% of India&#8217;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).<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p><strong>Read our Books Here:<span style=\"color: #0000ff;\"> <a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/book-category?CatId=1&amp;SubCatID=1\">Chemical Technology (Organic, Inorganic, and Industrial), Fine Chemicals<\/a><\/span><\/strong><\/p>\n<p>&nbsp;<\/p>\n<p><strong>GROWTH DRIVERS <\/strong><\/p>\n<ul>\n<li>Rising disposable income, population age, urbanisation, and increasing penetration and demand from rural markets<\/li>\n<li>Shift in production and consumption towards Asian and Southeast Asian countries in all sectors, leading to increased demand for Chemicals and Petrochemicals<\/li>\n<li>Shift in consumer preferences toward a healthier lifestyle and environmentally friendly products, leading to increased demand for Chemicals and Petrochemicals<\/li>\n<li>Potential to produce $111 billion in chemical goods for domestic use by 2023.<\/li>\n<li>Under the Atmanirbhar Bharat Abhiyaan, there is a Production-Linked Incentives scheme for the manufacturing of Advance Cell Chemistry Batteries.<\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>PLI (Production-Linked Incentives) Program<\/strong><\/p>\n<p>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&#8217;s Manufacturing Capabilities and Exports \u2013 Atmanirbhar Bharat.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Watch other Informative Videos:<\/strong><span style=\"color: #0000ff;\"><strong> <a style=\"color: #0000ff;\" href=\"https:\/\/youtube.com\/playlist?list=PL61bSU5tvb-XCyFuPHXJUDbk21wUkhkA6\">Chemicals (Organic, Inorganic, and Industrial)<\/a><\/strong><\/span><\/p>\n<p>&nbsp;<\/p>\n<p><strong>TRENDS IN THE INDUSTRY<\/strong><\/p>\n<p><strong>Agrochemicals:<\/strong> The agrochemical sector in India is expected to increase at an annual rate of 8-10% till 2025.<\/p>\n<p><strong>Petrochemicals:<\/strong> Over the next decade, India&#8217;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%.<\/p>\n<p><strong>Fertilizers:<\/strong> 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.<\/p>\n<p><strong>Specialty Chemicals:<\/strong> Specialty chemicals make up more than half of India&#8217;s overall chemical exports.<\/p>\n<p>&nbsp;<\/p>\n<p><strong>Download PDF:<span style=\"color: #0000ff;\"> <a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/pdf-and-doc-details?Id=16351&amp;title=Indias%20Chemical%20Industry%20Sector%20Overview\">India&#8217;s Chemical Industry: Sector Overview<\/a><\/span><\/strong><\/p>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Some Useful Links:<\/strong><\/p>\n<p><strong>Government Ministry\/ Department<\/strong><\/p>\n<ul>\n<li><a href=\"http:\/\/chemicals.nic.in\/\"><span style=\"color: #0000ff;\">Department of Chemicals &amp; Petrochemicals, Ministry of Chemicals &amp; Fertilizers<\/span><\/a><\/li>\n<\/ul>\n<p><strong>\u00a0<\/strong><\/p>\n<p><strong>Industry Associations<\/strong><strong>\u00a0<\/strong><\/p>\n<ul>\n<li><a href=\"http:\/\/ama-india.org\/\"><span style=\"color: #0000ff;\">Alkali Manufacturers Association of India<\/span><\/a><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/cpmaindia.com\/\">Chemicals &amp; Petrochemicals Manufacturers Association<\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/croplifeindia.org\/\">Crop life India Dye Manufacturers Association of India<\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.indianchemicalcouncil.com\/\">Indian Chemical Council<\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/iscma.in\/\">Indian Speciality Chemical Manufacturers Association<\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.oppindia.org\/\">Organization of Plastic Processors of India<\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.aipma.net\/\">The All India Plastic Manufacturers&#8217; Association<\/a><\/span><\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<ul>\n<li><a href=\"https:\/\/www.entrepreneurindia.co\/page\/business-opportunities-in-asian-countries\/\"><strong><span style=\"color: #0000ff;\">Start a Business in Asia<\/span><\/strong><\/a><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/opportunities-in-potential-countries-for-doing-business\/\"><strong>Start a Business in Potential Countries for Doing Business<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/best-industry-for-doing-business\/\"><strong>Best Industry for Doing Business<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/business-ideas-with-low-medium-high-investment\/\"><strong>Business Ideas with Low, Medium &amp; High Investment<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/most-demandable-business-ideas-for-startups\/\"><strong>Looking for Most Demandable Business Ideas for Startups<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/startup-consulting-services\/\"><strong>Startup Consulting Services<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/business-opportunities-in-africa\/\"><strong>Start a Business in Africa<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/business-opportunities-in-india\/\"><strong>Start a Business in India<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/page\/business-opportunities-in-middle-east\/\"><strong>Start a Business in Middle East<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.youtube.com\/c\/NIIRproject\/playlists\"><strong>Related Videos<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/books\"><strong>Related Books<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/project-and-profile\"><strong>Related Projects<\/strong><\/a><\/span><\/li>\n<li><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\/market-research-report\"><strong>Related Market Research Reports<\/strong><\/a><\/span><\/li>\n<\/ul>\n<p>\ud835\udc02\ud835\udc28\ud835\udc27\ud835\udc2d\ud835\udc1a\ud835\udc1c\ud835\udc2d \ud835\udc2e\ud835\udc2c<\/p>\n<p>NIIR PROJECT CONSULTANCY SERVICES, DELHI<\/p>\n<p><em>An ISO 9001:2015 Company<\/em><\/p>\n<p>ENTREPRENEUR INDIA<\/p>\n<p>106-E, Kamla Nagar, Opp. Mall ST,<\/p>\n<p>New Delhi-110007, India.<\/p>\n<p>Email: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"mailto:npcs.ei@gmail.com\">npcs.ei@gmail.com<\/a><\/span><\/p>\n<p><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"mailto:info@entrepreneurindia.co\">info@entrepreneurindia.co<\/a><\/span><\/p>\n<p>Tel: +91-11-23843955, 23845654, 23845886<\/p>\n<p>Mobile: +91-9097075054, 8800733955<\/p>\n<p>Website: <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.entrepreneurindia.co\">https:\/\/www.entrepreneurindia.co<\/a>\u00a0<\/span><\/p>\n<p><span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.niir.org\">https:\/\/www.niir.org<\/a><\/span><\/p>\n","protected":false},"excerpt":{"rendered":"India&#8217;s Chemical Industry: Sector Overview In India, the Chemicals and Petrochemicals sector is worth $178 billion. The Indian&hellip;","protected":false},"author":1,"featured_media":10430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"csco_display_header_overlay":false,"csco_singular_sidebar":"","csco_page_header_type":"","footnotes":""},"categories":[39,44],"tags":[204,1108,1109,1110,1114,12926,2810,12927,4109],"industry":[12275,12283,12290],"class_list":["post-10428","post","type-post","status-publish","format-standard","has-post-thumbnail","category-business-opportunities","category-project-reports","tag-agrochemicals","tag-chemicalplant","tag-chemicalproduction","tag-chemicalproducts","tag-chemicals","tag-indiachemicalindustry","tag-industrialgases","tag-pharmaceuticals","tag-polymers","industry-agrochemicals","industry-best-business-opportunities-in-india","industry-chemical-industry","cs-entry"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v28.6 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>India&#039;s Chemical Industry: Sector Overview. 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This sector is worth $178 billion","description":"India's Chemical Industry: Sector Overview India is a major player in the chemical industry. The Chemicals and Petrochemicals sector is worth $178 billion","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.niir.org\/blog\/indias-chemical-industry-sector-overview\/","og_locale":"en_US","og_type":"article","og_title":"India's Chemical Industry: Sector Overview. This sector is worth $178 billion","og_description":"India's Chemical Industry: Sector Overview India is a major player in the chemical industry. 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