India is currently the world’s third largest consumer of polymers and fourth largest producer of agrochemicals. In terms of volume of production, the Indian chemical industry is the 3rd largest producer in Asia and 12th in world. It accounts for approximately 7 per cent of the world production of dyestuff and dye intermediates, particularly for reactive acid and direct dyes.
India’s chemical industry is expected to grow at 15 per cent per annum to reach US$ 290 billion by 2017. Total production in the Indian chemical industry was 8,402 million tonnes (MT) in FY13. With 72 per cent of the total production share, alkali chemicals form the largest segment in the Indian chemical industry. During FY 13, alkali chemicals’ production stood at 6,081 MT.
Chemicals constituted 5.2 per cent of India’s total exports in FY 13. Total exports of chemicals grew from US$ 3.5 billion in FY 03 to US$ 15.5 billion in FY 13, a compound annual growth rate (CAGR) of 16.2 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 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.