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Indian Chemicals Industry Analysis

August, 2013

The total market size of the Indian chemicals industry is expected to grow from US$ 108 billion in 2011 to US$ 290 billion in 2017. Total production in the Indian chemical industry was 8,374 million tonnes (MT) in FY12, an increase of 2.5 per cent over FY11.Total exports of chemicals grew from US$ 3.5 billion in FY03 to US$ 16.1 billion in FY12, a compound annual growth rate (CAGR) of 18.7 per cent.

India’s growing per capita consumption and demand for agriculture-related chemicals offers huge scope of growth for the sector in future. With an increased focus on improving products and usage intensity of specialty chemicals, the industry is poised for strong growth.

The Government of India (GOI) has allowed 100 per cent foreign direct investment (FDI) in the Indian chemicals sector and has de-licensed the manufacturing of most chemical products. It is also providing infrastructure support for setting up of petroleum, chemicals and petrochemicals investment regions (PCPIRs) by constructing roads, ports and other similar facilities.

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