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In terms of value and production volume, Indian chemical industry is the 3 rd largest producer in Asia and 6 th by output in the world. Indian chemical industry could grow at 11 per cent p.a. to reach size of USD224 billion by 2017. In 2016, Indian chemicals industry had a market size of USD139 billion. By 2025, the Indian chemical industry is projected to reach USD403 billion. The chemical industry in India is a key constituent of Indian economy, accounting for about 2.11 per cent of the GDP. More than 70,000 commercial products such as petrochemicals and basic chemicals are covered under chemical sector. India accounts for approximately 16 per cent of the world production of dyestuff and dye intermediates, particularly for reactive acid and direct dyes. India is currently the world’s 3rd largest consumer of polymers & 3rd largest producer of agrochemicals. India specialty chemical market is expected to reach USD70 billion by 2020. Value exports of inorganic chemicals from India is estimated at USD1.21 billion in FY16, with the organic chemical market reaching USD11.51 billion in FY16. Exports of organic chemicals from India stood at USD4.02 billion in FY16.

Polymers and agrochemicals industries in India present immense growth opportunities. In FY15, India’s construction chemical market was valued at USD589.58 million, thereby representing ample growth opportunity in chemical sector. In 2016, polymer production in India was recorded at around 9 million tons.

Major Segments of The Indian Chemical Industry

Base Chemicals

Petrochemicals, man-made fibres, industrial gases, fertilizers, chlor-alkali & other organic & inorganic chemicals

Specialty Chemicals

Dyes & pigments, leather chemicals, construction chemicals, personal care ingredients & other specialty chemicals

Pharmaceuticals

Active Pharmaceutical Ingredients & formulations

Agro-chemicals

Insecticides, herbicides, fungicides, & crop protection chemicals

Bio-technology

Bio-pharma, bio-agri, bio-services, & bio-industrial products

 

Product – Wise Classification of the Indian Chemical Industry

Alkali Chemicals

Soda ash, Caustic soda, Liquid, Chlorine

Inorganic Chemicals

Aluminium Fluoride, calcium carbide, carbon black, potassium chlorate, titanium dioxide, red phosphorous

Organic Chemicals

Acetic acid, acetone, phenol, methanol, ortho nitro chloro benzene (ONCB), Isobutyl, Para nitro chloro benzene (PNCB), Ethyl, Alkyl amines, acetic anhydride, formaldehyde

Pesticides & Insecticides

Malathion, parathion, ethicon, endosulphan, phosolone, phorate, acephate, fenvalerate

Dyes & Dyestuffs

Azo dyes, disperse dyes, fast colour bases, ingrain dyes, napthols, VAT dyes, reactive dyes, pigment emulsion, sulphur dyes

 

Total chemical production in India was 4808 MT in FY15 (upto September 2014) & reached to 4863 MT in FY16 (upto September 2015) . The growth of 1.1 per cent was registered from FY15 to FY16

With 69 per cent share in the total production, alkali chemicals accounted for the largest share in Indian chemical industry in FY16 (upto September 2015) During FY16 (April to September 2015), production of alkali chemicals in India stood at 3,322 MT.

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