Advantage India
Growing
Demand
* Rise in demand from end-user industries such as food processing, personal care and home care is driving development of different segments in India’s specialty chemicals market.
* Exports of Organic and Inorganic Chemicals reached US$ 4.78 Billion in April-May 2024.
* Chemicals and petrochemicals demand in India is expected to nearly triple and reach US$ 1 trillion by 2040.
* India is the 6th largest producer of chemicals in the world and 3rd in Asia, contributing 7% to India’s GDP.
Opportunities
* India’s specialty chemicals companies are expanding their capacities to cater to rising demand from domestic and overseas.
* With global companies seeking to de-risk their supply chains, which are dependent on China, the chemical sector in India has the opportunity for a significant growth.
* The Dahej PCPIR project in Bharuch, has attracted an investment of Rs. 1 lakh crore (~US$ 12 billion) and is expected to generate 32,000 jobs.
* The Indian chemical industry is currently valued at US$ 220 billion and is expected to reach US$ 300 billion by 2030 and US$ 1 trillion by 2040. This industry remains an active hub of opportunities, even in an environment of global uncertainty.
Policy
Support
* PLI schemes were introduced to promote Bulk Drug Parks, with a budget of Rs. 1,629 crore (US$ 213.81 million).
* Under the Interim Union Budget 2024-25 the government allocated Rs. 192.21 crore (US$ 23.13 million) to the Department of Chemicals and Petrochemicals.
* The Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) set up at Paradip has attracted investments worth US$ 8.84 billion (Rs.73,518 crores) resulting in employment of about 40,000 people.
* Government to open 25,000 Jan Aushadhi Kendras to make medicines available at affordable prices.
*The PLI plan for the National Programme on Advanced Chemistry Cell Battery Storage has been approved by the Union Cabinet as of May 2021.
Increasing
Investments
and spending
* FDI inflows in the chemicals sector (other than fertilizers) reached US$ 22.146 billion between April 2000-March 2024.
* An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025.
* Prime Minister, Mr. Narendra Modi, laid the foundation stone of development projects worth more than Rs. 50,700 crore (US$ 6.11 billion) on September 14, 2023.
Aarti Industries Limited
Aarti Industries Limited is a manufacturer of speciality chemicals and pharmaceuticals used in the downstream manufacturing of pharmaceuticals, agrochemicals, polymers, additives, surfactants, pigments, dyes, etc.
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Tata Chemicals Limited
Tata Chemicals Limited is a multinational company with presence in over 40 countries and has ~4,600 employees. The company has developed innovative products and has established a global position in inorganic and crop protection chemicals. The company’s key products include soda ash (3,670KT), sodium bicarbonate (222KT) IVSD (1,078KT) and cement (362KT).
Read MoreGujarat Fluorochemicals Limited
Headquartered in Noida, India, Gujarat, Fluorochemicals Limited is a part of INOX Group of Companies. The company has diversified business segments comprising chemicals, fluoropolymers, cryogenic engineering, entertainment, industrial gases and renewable energy. Starting with the ‘REFRON’ brand of refrigerants, the company expanded into fluorospeciality chemicals, exporting to over 75 countries.
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