In the past 25 years, India has achieved a remarkable and considerable pace in the chemical production and most of the growth has been driven by India from all Asian countries in chemical industry. With the structured operations and well built systems, the chemical industries in India are likely to be enhanced.
The chemical industry in India is considered as an integral part of its economy as it contributes around 6.7% of the Indian GDP. Whether it is a synthetic garment we wear, or thermoplastic furniture we use or drug we consume, we all are inevitably linked to chemicals in our day to day life. The industry has key linkages with several downstream industries including food processing, consumer durables, engineering and automotive.
Indian Chemical Industry plays a critical role in agricultural and industrial development of country. It may be hard to accept but it serves the basic needs of many industries such as metals, minerals, water, oil, natural gas and many more. Eventually this contribution brings into marketplace a range of several products, almost thousands of products to be precise.
Globalization and liberalization mannerism numbers of challenges to the industry that has essentially developed in safe environment. Today India is deliberated as one of the best chemical manufacturing and supplying country worldwide with the considerable progress in the production of both organic and inorganic chemicals including petrochemicals, paints, pesticides, intermediates, dye and specialty chemicals etc.
As per the study, improved chemical consumption is the result of rise in disposable income which aided the country's GDP further from 9 to 13%. Additionally in order to make the chemical industry more flourishing and progressive, the Indian Government introduced certain policies and special economic zones that centered the petrochemical sector. In coming years, many manufacturing companies are there focusing on the expansion plans.
According to the recent report, the industry potentially grows to a size of USD 100 billion via range of concerned efforts. This effort would indicate an annual growth rate up to 15.5%. To achieve this grand size, industry's segment of specialty and knowledge would need to rise at 16.4% and 27% respectively, however the basic segment would need to sustain 7.7% (its current growth rate).
The Indian Chemical industry is yet making its presence felt in a huge way in global markets. Some of the fast facts about Indian chemical industry include highly disintegrated, availability of many multinational companies, micro level operation, minor spotlight on resource and development, varied chemicals in bulk, fine and specialty chemicals and huge cost of capital making it less competitive in the international markets.
The chemical industry in India deals in wide range of chemical segments such as:
? Organic chemicals reportedly around 1 billion dollar industry contributing Indian economy.
? Inorganic chemicals worth is US$ 2.5 billion, concentrates on the manufacturing on Sulphuric Acid and Caustic Soda.
? There are total 475 drugs yet discovered around the world and 425 are locally produced in India where 350 units are in organized sector and others are in unorganized sector.
? The consumption of Agro chemicals in India is reportedly low around 1/20th of the world average.
? Fine and specialties chemicals are one of the fastest growing sectors in India with market of US$ 80 million annually.
