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India's Emerging Chemistry With the World

    3 May , 2022         Fdiindia

India's Emerging Chemistry With the World

India is an attractive hub for chemical companies that contribute to the growth and development of any economy. The chemical industry is one of the most significant contributors to the overall health of any country's economy because of the impact chemicals have on various sectors like medicine, construction, engineering, and manufacturing.

It has been dubbed the "national bonding" by Piyush Goyal, Minister of Commerce & Industry, who, in a recent tweet, mentioned that it was India's organic and inorganic chemicals augmenting export growth by 106%, which is in tune with PM Narendra Modi's Atmanirbhar Bharat Abhiyan. In fact, it has been stated that the development of the Indian chemical industry is expected to double to reach USD 304 billion by 2025, clocking to an annual growth rate of 15%-20%. In 2025, investment in the sector is anticipated at Rs 8 lakh crore. In July 2021, production volumes of essential chemicals stood at 909,310 MT and petrochemicals at 1,867,351 MT.

India is the 6th largest producer of specialty chemicals in the world. The Indian market is a USD 36 billion industry and has grown around 17 percent over the past few years, contributing to $ 4 billion in exports to its partners abroad.

We're happy to share with you exciting news. As a producer of sulphuric acid, we are contributing to the flourishing of any economy through the increased production levels and contributions towards infrastructural development in various regions around the country. This vital chemical can be found in a variety of products like detergents, petroleum exploration, water treatment, wood processing, textile manufacturing, et cetera. So much, so that dependency on this essential chemical in these fields has become an essential part if we want our industrial development to grow at record numbers in all areas!

Foreign Direct Investment (FDI) inflows increased substantially from April 2000 to December 2021. In November 2021, Indian Oil Corporation Ltd (IOCL) announced plans to invest Rs 3,681 crore (USD 495.22 million) in its Panipat Refinery in Haryana for a new factory for polymers and specialty polymers.

The government of India has identified the need for continued growth in the Indian economy as key and so has called for a major focus on chemistry. In chemistry, 100 percent Foreign Direct Investment is allowed at all times.

The Indian chemical industry is quite well-known worldwide. In 2020, it ranked fifth in the world in terms of revenue. It has over 80,000 products and is also one of the most diversified sectors in the country. The overall market size of the Indian chemical industry is standing at $178 billion in 2018-19. India ranks 14th in exports (excluding pharmaceuticals) and eighth in imports globally.

The domestic chemical industry is expected to grow 18-23% in FY22. This growth is driven by domestic demand and higher realization because of high prices caused in part by many chemicals producers operating in austerity mode during the last few years. As a consequence, almost all Indian specialty chemical companies are expanding their capacity to meet this growing demand from domestic and overseas markets.


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