INDIAN CHEMICAL INDUSTRY AT A GLANCE IN 2022 - 2023
India is the sixth-largest producer of chemicals in the world and the third in Asia. India ranks fourteenth position in the export of chemicals globally. India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for 16-18% of the world production of dyestuffs and dye intermediates. Indian colorants industry has emerged as a key player with a global market share of about 15%. The Indian Chemical Industry contributes 7% to India’s GDP.
India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. Indian manufactures about 80,000 chemicals.
The domestic chemicals sector's small and medium industries showcased 18-23% revenue growth in the current financial year. Domestic demand of chemicals is expected to rise from US$ 170 billion-US$ 180 billion in 2021 to US$ 850 billion-US$ 1,000 billion by 2040. The demand for chemicals is expected to expand by 9% per annum by 2025. The chemical industry is expected to contribute US$ 383 billion to India’s GDP by 2030.
Industry InvestmentsFDI inflows in the chemicals sector in India reached US$ 20.96 billion by December 2022. An investment of Rs. 8 lakh crore (US$ 107.38 billion) is estimated in the Indian chemicals and petrochemicals sector by 2025. Under the Union Budget 2023-24, the government allocated Rs. 173.45 crore (US$ 20.93 million) to the Department of Chemicals and Petrochemicals.
Indian Specialty ChemicalsThe specialty chemicals constitute 22% of the total chemicals and petrochemicals market in India. The demand for specialty chemicals is rose at a 12% CAGR till 2022. The specialty chemicals market in India would grow faster, increasing its market share to 6% by 2026 from 3-4% in fiscal 2021. A shift in the global supply chain brought on by the China’s strategy and an increase in domestic end-user demand will fuel significant revenue growth of 18–20% in the current financial year.