With the closure of chemical plants in European countries, chemical manufacturing companies all over the world have moved to Asia. India is the sixth largest producer of chemicals in the world, but its production has increased significantly. As a result, India is the third largest producer of chemicals in Asia. Because of its proximity to the Middle East and Africa, a large amount of oil is exported to other countries to earn foreign exchange reserves.
The main products are made in India
India is becoming a new core of chemical manufacturing, producing more than 80000 commercial products. The industry produces specialty chemicals, agricultural chemicals, polymer additives, pharmaceuticals and petrochemical products. In addition, the industry produces fertilizers, paints, varnishes, glass, perfume, toiletries and other consumer goods, which are not only consumed domestically, but also exported to many countries. India produces a wide range of industrial chemicals, which are specifically used for various tasks. These are raw materials for many industries, which are used to apply and manufacture consumer products.
Important highlights of Indian chemical industry
The Indian government has approved 100% of foreign direct investment in the chemical industry, except for dangerous products. India’s manufacturing industry has high enthusiasm and optimistic prospects, attracting investment from domestic and foreign customers. The following are the main highlights of the industry:
India’s chemical industry is expected to reach $304 billion by 2025.
India is the largest producer of dyes and intermediates, accounting for 16% of the global market share.
India’s exports rank 14th in the world, excluding the pharmaceutical industry.
The demand for chemicals is expected to grow at an annual rate of 9% over the next five years.
Akalis has a 69% market share.
The output of agricultural chemicals ranks fourth in the world
The industry employs more than two million people in India.
India’s special products market, crop protection and petrochemical products have a bright future.
What are the main drivers of India’s chemical industry growth?
India’s chemical industry contributed a lot to GDP growth, currently 6.7%. In addition, the sector involves millions of people working in it, using thousands of consumer goods. There is a significant link between industrial development and chemical consumption in India, which affects several downstream industries such as automobile, consumer goods and food processing.
The following are the reasons for the growth of the industry:
India is a developing country with high purchasing power, which promotes the growth of domestic industry. This growth is expected to continue in the next few years. It has stimulated consumption of paints, building materials and other chemicals in India.
Domestic consumption growth
India is the largest consumer of its products, accounting for 33% of its total output. This domestic consumption trend is expected to continue in the next few years.
India has diversified manufacturing bases and produces world-class products. An expanding domestic market is possible because of the well-trained workforce. The production base of special chemicals and other raw materials is located in India.
Chemicals account for 5.4% of India’s total exports. The main importers of Indian chemicals are the United States, Germany, UAE, Switzerland, Turkey, Singapore and Japan.
India is improving its capacity to produce chemicals and raw materials. As a result, many companies, distributors and chemical traders have come to the Indian market to purchase the products they need.