![](https://www.niir.org/blog/wp-content/uploads/2022/06/Growth-of-Chemical-Industry--300x169.jpg)
India is embarking on a high growth path, and the country is establishing itself as an attractive destination for investment in chemical industry. Organic chemicals are witnessing high growth due to growing demand from consumer goods & pharmaceutical industry.
The Chemical industry dominates the Indian economy accounting for 6% of the total industrial output in 2009. India’s chemical industry is currently regulating towards modernization of the chemical plants and adopting western technologies while simultaneously increasing their productivity. The main factors for its growth could be listed as follows:
Fundamental Edge- the Indian paint industry is the fourth largest in terms of volume and the third largest in terms of value marketed at Rs. 16,500 Crore in FY 2013-14. The paint industry has exhibited a positive growth on account of the growing construction activity, rising disposable income levels, rural demand and adoption of modern building material like polymer modified cement sheet, plastics and ceramic tiles.
Visit this Page for More Information: Start a Business in Chemical Industry Projects
With a growing market and purchasing power and with India's growing population, the domestic industry is likely to grow at over 10-13 percent in the coming years. Growing disposable incomes and increasing urbanization are fuelling the end consumption demand for paints, textiles, adhesives and construction, which, in turn, leads to substantial growth opportunity for chemicals companies.
Government Policies- India’s chemical industry has always been protected by high tariffs, strict foreign direct investment (FDI) policies and other regulatory controls. The government of India has maintained a mixed, uncertain and cautious view on FDI in the chemical industry. Increasing growth in end -user demand is expected to boost the domestic market for chemical products in India in the coming years.
Watch Video: India's Chemical Industry: Sector Overview
Also, around the globe the chemical industry is a major contributor to the U.S. economy. It has been growing steadily since 1949 and now accounts for over one trillion dollars in goods and occupational output.
The steady growth of the U.S. chemical industry rests on the foundation of government policies that have encouraged large investments in basic research, development, and innovation as well as increasing public and private sector collaboration.
There has been an array of governmental policies that have contributed to this industry's success ranging from basic research, infrastructure support programs (particularly those supporting scientific education), infrastructure assistance like tax credits and investment tax credits, intellectual property protections (mainly through the patent office, but also via WTO agreements), modern measurements of science and technology commercialization, deregulation of chemical production, public-private sector partnerships between government agencies (particularly NIH) and companies for transferring scientific findings into innovative commercial processes., trade protectionism , defence contracts related to new technologies.
Read Similar Articles: Chemical Industry
Rise in Demand- India was the seventh largest producer of chemicals in the world in 2012 and one of the top producers of chemicals in Asia. The Indian chemical industry consumes around 33% of its own production, mostly due to extensive usage in the domestic textiles industry. This presents a great opportunity for you as an investor – hence, we have dedicated special attention to the chemical sector in India.
India is the largest consumer of its own products. This fact underlines the sector's importance to the overall economic health of the country as well as its deep integration into local industries. The Indian chemical industry, which is dominated by large companies, especially consumes basic petrochemicals output for its own use (33% of total output in 2015).
However, this might deepen over time as India's regulations are becoming more demanding and are increasingly encouraging industries to move up the value chain.
Bulk of Producers- From bulk chemicals to specialty compounds, from agrochemicals to fine chemicals, from healthcare products to materials and polymers, the Indian chemicals industry has a diversified manufacturing base that produces world-class products.
The country has even declared itself as a major knowledge hub for a host of chemical-intensive industries. And its largest pool of scientific manpower is ready and willing to help you create value in the fastest growing sectors of the global economy – pharmaceuticals and agrochemicals.
Related Feasibility Study Reports: Chemicals (Organic, Inorganic, Industrial) Projects
India's chemicals industry segment is a fast-growing sector of the economy characterized by its large diversity in terms of the products and applications. The Indian chemicals industry has a diversified manufacturing base, high-value added downstream industries such as petrochemicals, Fertilizer, and agrochemicals, as well as world class products produced locally or through global operations spread across the world. This large and expanding domestic market is also characterized by a very large pool of scientific manpower trained to cater to this fast-growing sub-sector.
Increased Exporters- India ranks third among major dyes exporting countries. At present India exports over 355 different types of dyes to over 22 countries all over the world through.
DEPCO’s range of dyes is one of the most comprehensive in India and is growing as a result of our ongoing investment in product and process innovation.
Our products are available in various forms – bulk products, powder, crystalline and aqueous (liquid) solutions. They offer a large variety of dyes, which have applications in many industries.
It is also largest exporter of dyes and pigments in Asia, accounting for ~3.5% of the global exports. The Indian pharmaceutical industry has grown to reach a turnover of Rs.282 billion and provided employment to around 1 million people in 1998-99.
Read our Books Here: Chemical Technology (Organic, Inorganic, and Industrial), Fine Chemicals
Additional Formats- Being one of the fastest growing economies in the world, India offers a wide range of business opportunities for chemical industries. The key driver for chemical demand is growth in infrastructure and social sectors like health, education and transportation. In addition, with the growth in living standards and per capita income, there has been a rise in consumption of personal care and home care products.
The Indian chemical industry is poised for rapid growth with the government’s initiatives to encourage bio – based chemical inputs, eliminate tariff and non – tariff barriers, strengthen regional integration of chemical sector, promote domestic and export-oriented investments, incentivise innovation and technology development and R&D activities.
Reliance Industries Limited, focus on four key areas of diversification - Chemicals, Energy, Retail and Digital. Initiatives have been taken to ensure that their products and services are available when you need them. They believe this sentiment allows our customers to focus on their work while we provide a seamless experience.
At the helm of India’s chemical and petrochemical industry, the Steel Ministry is set to bring in numerous reforms. These include setting up oil refineries in collaboration with international oil majors, multiband retail for consumer goods and reforms to help launch innovative products across consumer and industrial categories. The Ministry is also focused on increasing value addition in the industry to drive growth in the domestic chemicals and fertilisers sectors, besides providing impetus to the Prime Minister’s Make in India initiative.
Download PDF: India's Chemical Industry: Sector Overview
Investment Criteria- TPCL has offered to develop a technology up-gradation fund of USD 80 million in the 12th Plan period and to support this effort with 50 matching grants. The four projects approved for implementation are: work on upstream reaction technologies, value chain upgrading via major low-impact technologies, work on downstream separation and purification systems, business opportunities in chemical synthesis and processing, specifically aimed at independent entrepreneurs.
Effects from Industrial Sectors
The Indian chemical industry is the second largest in Asia and the twelfth largest in the world. It encompasses a range of products, both basic and sophisticated, including petrochemicals, pharmaceuticals, agricultural chemicals, dyestuffs and speciality chemicals. The sector has been growing steadily at about 9 – 10 percent per annum in recent years, with special emphasis on exports markets.
Top ten chemical companies listed in the Indian markets, based on their 2012 revenues are: Company Name Tata Chemicals United Phosphorous Limited BASF India Glycols Pidilite Industries Vikas WSP Phillips Carbon Black Limited Gujarat Heavy Chemicals Aarti Industries Gujarat Alkalies & Chemicals Limited
Indian chemical industry is primarily small scale and scattered. There are over 70,000 chemical manufacturing units throughout the country. India exports chemicals to over 120 countries across the world.
Some of these export destinations include United States, Germany, South Korea, Italy, France and Japan. The top ten chemical companies listed in the Indian markets are: Indian Oil Corp. Ltd., Hindustan Petroleum Corp, Ltd., Bharat Petroleum Corp., Ltd., National Chemical & Fertilizer Co., Ltd., Tata Chemicals Ltd., Asian Paints Ltd., Rashtriya Chemicals & Fertilizers Ltd., Jubilant Organosys Ltd., Sun Pharma Global Fze Limited and Gujarat Ambuja Exports Limited.
Watch other Informative Videos: Chemicals (Organic, Inorganic, and Industrial)
Wrapping Up:
With a vision to become a growth engine of the Indian chemical industry and to make India-designated as a “Fast Track Nation” for implementation of innovation processes through increased investments in R&D in order to reduce the time for technology transfer, product commercialization, new venture creation and establishment of new manufacturing units.
Industries are also proposing a Technology up-gradation fund of ~$80 Mn during the 12th plan period and preparing our systems to enable us to leverage upon additional USD 100 Mn fund unlocking new avenues for Indian chemicals market.
The chemical industry has grown from $47 billion in 2004 to $ 74 billion in 2009. The major growth drivers for the industry have been the strong demand for transportation fuels, especially the motor gasoline; and increase in demand of chemicals as raw material for production of pharmaceuticals, agrochemicals, textiles and construction materials. Some of the other growth drivers have been increase in import of chemicals, low energy prices and increased per capita income.
See More Links:
· Start a Business in Asia
· Start a Business in Potential Countries for Doing Business
· Best Industry for Doing Business
· Business Ideas with Low, Medium & High Investment
· Looking for Most Demandable Business Ideas for Startups
· Startup Consulting Services
· Start a Business in Africa
· Start a Business in India
· Start a Business in Middle East
· Related Videos
· Related Books
· Related Projects
· Related Market Research Reports
𝐂𝐨𝐧𝐭𝐚𝐜𝐭 𝐮𝐬
NIIR PROJECT CONSULTANCY SERVICES, DELHI
An ISO 9001:2015 Company
ENTREPRENEUR INDIA
106-E, Kamla Nagar, Opp. Mall ST,
New Delhi-110007, India.
Email: npcs.ei@gmail.com
info@entrepreneurindia.co
Tel: +91-11-23843955, 23845654, 23845886
Mobile: +91-9097075054, 8800733955
Website: https://www.entrepreneurindia.co
https://www.niir.org