Saturday, November 10, 2018

CHEMICAL INDUSTRY SPECIAL.... Indian chemical industry set to touch $304-bn by FY25: Report


Indian chemical industry set to touch $304-bn by FY25: Report

The country’s chemical industry is expected to grow at around 9 percent per annum to reach $304-bn by FY25, from $163-bn in FY18, according to a report by Tata Strategic Group, brought in association with industry body FICCI, and unveiled at the India-Chem 2018 expo & conference held in Mumbai recently.
The growth is likely to be driven by rising demand in end-use segments for speciality chemicals and petrochemicals intermediates, the report stated.
The study said the domestic chemical sector (other than fertiliser) attracted FDI investment of $1.3-bn in FY18, which is about 3 percent of the total FDI inflow. Noting that the domestic chemical industry’s growth is largely driven by country’s consumption growth story, the report said the per capita consumption of chemicals in the country is 1/10th of world average with India being a low consumption country even among developing nations.
Mr. Deepak Mehta, Chairman-FICCI National Chemical Committee and CMD, Deepak Nitrite, said that the significantly growing domestic market and the upheavals in international markets, particularly with respect to China, augur well for the Indian chemical industry. The country must target to become the third largest player in the next few years, he added.
According to BASF India’s Chairman & Managing Director Dr. Raman Ramachandran, the chemical industry will be a key enabler and catalyst in achieving the target of $1 trillion manufacturing economy by 2028, from the current $380-bn. “The projected high local demand will provide us a strong plat form to also establish ourselves as major supplier of speciality chemicals to the world with right investments. The chemical sector is very strategic to achieving our country’s vision encompassed in Make in India, Swachh Bharat, Housing for All and Power for All,” he said.

Chemical Weekly Issue date: 23rd October 2018

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