Chemical

industry of
India

Chemical industry of
India
The

Chemical industry provides valuable

inputs for other industries such as textiles,
paper, paints and varnishes, leather etc.,
which are required in almost all walks of life.
The Indian Chemical Industry has small,
medium as well as large-scale units.
it is called the backbone of the industrial
and agricultural development of the country
and provides building blocks for many
downstream industries.

Chemical industry of
India

The

Indian Chemical sector accounts for 1314% of total exports and 8-9% of total
imports of the country.
It contributes about 5-6% in the GDP of the
country.
In terms of volume of production Indian
chemical industry stood as 3 rd largest
producer in Asia and 12th in world.
per capita consumption of products of
chemical industry in India is about 1/10th of
the world average.

Chemical industry types

Following
sub
groups
have
constituted for chemical industry:
1. Organic Chemicals
2. Inorganic Chemicals
3. Dyestuffs & Dye Intermediates
4. Pesticides and Agrochemicals
5. Alcohol Based Industry.

been

State wise share in production of chemicals

Gujarat

53%

Maharashtra

9%

Madhya

5%

Pradesh
Uttar Pradesh
Tamil Nadu
Punjab
Others
TOTAL:

6%
6%
4%
17%
100%

Strengths
- Capability to produce world-class end
products.
- Strong presence in the export market
in sub-segments such as Dyes,
Pharmacy and Agrochemicals.
- Large domestic market.
- Major raw material component
sources within the country.
- Good R&D base and quality human
resources.

Weakness

Cost of Power
Cost of Finance
Infrastructure
Scale of Production:
Technology
Cost Disadvantages

Opportunities
India

has the capacity for major

value addition, being close to
Middle East. This is a cheap and
abundant
source
for
petrochemicals feedstock.
Explore the bio-diversity in India
to develop bio-pesticides on a
commercial basis.

Threats
competition

to
the
Indian
chemical industry would become
more intense.
Industry is of the view that
Chinese products are cheaper as
compared to Indian products
despite similar labor and other
input costs. This is mainly
attributed to high taxes and poor
infrastructure.

Key domestic players in Indian chemical industry

Tata

Chemicals Limited (TCL)

United Phosphorus Limited (UPL)
Nirma Ltd
Gujarat Heavy Chemicals Ltd
(GHCL)
Gujarat Alkalies and Chemicals
Ltd (GACL)

International players in
Indian chemical industry
BASF
The

Dow Chemicals
Bayer
Lanxess
Wacker Chemie
AkzoNobel
E. I. du Pont de Nemours and
Company

INDIAN CHEMICAL COUNCIL

(ICC)
Established

in 1938, is dedicated
to the growth and promotion of
the Chemical Industry in India.
It support and promote all
branches of the industry through
a variety of events, trainings,
awards & recognitions, policy
advise and other useful activities.

Five Year Plan 20122017

To undertake the initiatives recommended,

a provision of 575 Crore has been
proposed for 12th Plan Period.
Out of Rs. 575 crore, Rs. 50 Crore is
proposed for the establishment of the
Indian chemicals inventory.
25 crore is for Chemical Promotion and
Development Scheme
Balance Rs. 500 crore is for establishment
of Technology Up-gradation

Actions to be taken by
government
Improve

infrastructure
Set-up
talent
development
infrastructure
Improve image of the industry
Consolidate
acts
into
an
Integrated Chemical Legislation,
simplify regulatory structure and
strengthen regulations
Rationalize taxes and duties

Actions to be taken by
industry
Establish

a targeted innovation
platform, invest more in R&D
Create a positive, consumer &
environment friendly image
Interact with regulatory/ industry
bodies
Secure feedstock and technology

THANK YOU