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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