The Indian chemical industry is expecting a doubled turnover to $300 billion by the year 2025.
- The Chemical Industry in India is growing over 10% for the last 10 years, which includes 40,000 to 50,000 companies of which, there are top 40 multinationals which are the members of the Indian Chemical Council.
- The Indian Chemical Council (ICC) leads the Indian chemical industry which is planning to double the turnover from the $150 billion to $300 billion by 2025, expecting the government’s support to the upcoming infrastructure and policy changes.
- This new thing will attract an additional investment of around $75 to $100 billion and the target will also reduce the import dependency and enhance exports. Here, Indian will need at least one new cracker each year with an investment of $1 billion for the next 10 years to produce basic chemicals like propylene, ethylene, butadiene and other derivatives needed for the petrochemical industry to fulfill the requirement of raw materials for Indian chemical industries.
“Many sectors are observing great changes. For instance, the automobile industry will be demanding batteries more, and the Indian industry is ready to take up this challenge, provided the government will support it with long-term and short-term strategy actions and needed infrastructure,” said, Bimal Gokul Das, additional vice-president of ICC.
The Chemical Industry in India is growing over 10% for the last 10 years, which includes 40,000 to 50,000 companies of which, there are top 40 multinationals which are the members of the Indian Chemical Council.
Seeing to the offered Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) plan many years ago have not taken off so far, he mentioned that the sector seriously needs good harbors, connectivity, cheap power and water to become aggressive in the countries like China. “In India, we have to create basic infra to initiate a chemical facility, whereas from ground leveling and last support is offered by the Chinese government and the business owners have to only set up their unit,” he noted.
Sections of the industry like specialty chemicals need quicker permissions to start the manufacturing of new products to grabbing the new & changing markets. While India can battle with China in value-added and specialty chemicals, lack of capabilities in bulk chemicals is a big concern, as we lack reasons for raw materials, infrastructure, and power when linked to nations like China.
Many other Free Trade Agreements (FTAs) India has started with diverse nations have been a setback for the industry. Now the government has started operations like mandating BIS-like certification for shipped chemicals to stop dumping of cheap and substandard chemicals into the country.
Currently, India has only 54 businesses having “Responsible Care” certification, global energy through the International Council of Chemical Associations (ICCA) since 2003, to responsibly overcome pollution, taking care of the health and safety of workers, etc. India has measures like compulsory effluent handling of chemicals to decrease salt content, for the water released into the deep sea, he said.