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Indian Chemical Sector

Indian chemical industry is the 3rd largest in Asia and the 6th largest in the world. It is growing at 5-6% over the last few years and expected to reach 8-9% growth in coming years. Domestic chemical industry is expected to grow to $226 billion by 2020. 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.

The Indian chemicals industry has a diversified manufacturing base that produces world-class products. There is a substantial presence of downstream industries in all segments. Basic chemicals has over 50% share of total chemical production. Speciality chemicals and knowledge chemicals forms 20% and 30% respectively.

Indian Chemical Industry comprises both small and large-scale units, and presently, there are about 70,000 chemical manufacturing units located in the country (Deptt. Of Chemicals and Petrochemicals-Draft National Chemical Policy-December 2013) a major component (in numbers) are covered in the small scale sector. Government recognizes Chemical industry as a key growth element of Indian economy. In Chemical Sector, 100% FDI is permissible. Manufacture of most of chemical products is delicenced.