The chemical industry in India offers building blocks and essential raw materials for numerous industries such as paints, paper, textiles, pharmaceuticals, agrochemicals, soap, and detergents, etc.
Let’s go through a few statistics of the chemical industry:
The chemical industry in India is ranked 4th in Asia and 6th in the world.
The global chemical industry is expected to be worth $4.7 trillion.
The chemical companies in India contributes 3.4% to the global chemical industry.
As of 2018, the chemical industry (including pharmaceuticals and fertilizers) stood at $163 billion.
The Chemical sector in India is expected to grow at 9% per annum to reach $304 Bn by FY 2025. The expansion is anticipated to be pushed by rising demand in end-use segments for Specialty Chemicals and also for petrochemical intermediates.
In 2015-16, the Chemical and Chemical Products sector accounted for 2.39percent of the GVA, compared to 2.23percent in 2014-15.18
Note: With India possessing a large pool of skilled science professionals, more than 2 million people are employed within the chemical industry in India. Moreover, the Indian market offers a vast population and a strong export demand, as well.
Even though our chemical industry is making enormous progress within the business of producing products, chemical imports in India are continually rising. Chemicals form a vital element of the manufacturing and agricultural sectors of India. Our industries require chemicals on an everyday basis, from construction structures to pesticides for plants. There are a few things that Chemical Companies in India specifically get from outside.
To understand the quantum of chemical and its subsets imports in India, one needs to understand the fact that there are two broad categories where chemical importers deal with: organic chemical imports and inorganic chemical imports. Organic chemical imports support the agricultural industry, whereas the inorganic type chemicals are used in manufacturing businesses and several other sectors such as the dyes and paint sector.
The country exports about half of its chemical goods to critical foreign markets such as the U.S., Canada, Western Europe, Japan, and China.
The industry covers more than 70,000 commercial products in the following classes:
Inorganic and organic chemicals
Dyes and pigments
Fine and specialty chemicals
Drugs and pharmaceuticals
Plastics and petrochemicals
Pesticides, agrochemicals, and fertilizers
Chemical companies in India frequently depend on other countries, including the USA, Germany, and Saudi Arabia, for imports. Though now, the focus has mainly switched into the creation of chemicals in India.
The chemical industry of India is growing due to the strong demand for exports and the country's expansion in construction, textiles, agriculture, and automotive sectors. The business is also supported by government policies such as the allowance of 100% foreign direct investment and support for development and research.