Third largest consumer of polymers in the world
Fourth largest producer of agrochemicals in the world
Sixth largest producer of chemicals in the world
The chemicals industry in India is highly diversified, covering more than 80,000 commercial products. It is broadly classified into Basic chemicals, Specialty chemicals, and Agrochemicals. India’s proximity to the Middle East, the world’s source of petrochemicals feedstock, makes for economies of scale.
India is a strong global dye supplier, accounting for approximately 16% of the world production of dyestuff and dye intermediates. Chemicals industry in India has been de-licensed except for few hazardous chemicals. Upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and Plastic parks will provide state-of-the-art infrastructure for Chemicals and Petrochemicals sector.
The Indian chemicals industry is projected to reach $ 304 bn by 2025Indian chemicals industry excluding pharmaceutical products) ranks 14th in exports globallyDemand of chemical products is expected to grow at approximately 9% p.a. over the next 5 years. Indian chemical industry employs more than 2 mn people
100% FDI is allowed under the automatic route in the chemicals sector (except in the case of certain hazardous chemicals)
For further details, please refer to FDI Policy
16%Dyestuff and dye intermediates share (global)
1.2%Nation’s Gross Value Added
10.3%Chemical products exports share
3.4%Contribution to global chemical industry
Market size of the Chemicals industry in India stood at $ 163 bn in 2017-18. Total production of chemicals, including basic petrochemicals, stood at 25,739,000 MT during 2016-17, a growth of 3.86% over 2015-16. Alkali chemicals had the largest share in the Chemical industry in India with approximately 69% share in the total production. Production of polymers account for around 59% of total production of basic major petrochemicals.
The petrochemical market in India is expected to grow at a CAGR of 10% over the next 5 years to reach $ 100 bn by 2022The market for crop protection chemicals in India is expected to reach $ 7.5 bn by 2019. This growth in demand is based on a rapidly growing population and a decrease in per capita availability of arable land, both of which result in a greater need to increase agricultural yieldThe specialty chemicals market has witnessed a growth of 14% in the last five years; the market size is expected to reach $ 70 bn by 2020.
Toray Industries (India), a subsidiary of the Japanese major Toray Industries will invest INR 1000 crore to set up a plant for manufacturing chemicals used as advanced raw materials in Sri City, Andhra Pradesh
Himadri Speciality Chemical Ltd. is planning to invest $ 153 mn to expand its Carbon Black business by setting up new carbon black lines in its existing integrated plant in Mahistikry, West Bengal for producing Specialty Carbon Black.
Hindustan Petroleum Corporation Ltd (HPCL), Gail India Limited (GAIL) and Government of Andhra Pradesh, have signed a Memorandum of Understanding (MoU) for setting up a greenfield, standalone petrochemical complex in Andhra Pradesh. The proposed complex, which will be spread in 2000 acres of GMR’s Kakinada SEZ, is expected to involve an investment of $ 6.1 bn.
Government Ministry/ Department
Department of Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers
Alkali Manufacturers Association of India
Association of Synthetic Fibre Industry
Chemicals & Petrochemicals Manufacturers Association
Crop life India Dye Manufacturers Association of India
Indian Chemical Council
Indian Speciality Chemical Manufacturers Association
Organization of Plastic Processors of India
The All India Plastic Manufactures' Association