Growth Drivers

  • A large population,huge domestic market dependence on agriculture and strong export demand are the key growth drivers for the industry.
  • A global shift towards Asia as the world’s chemicals manufacturing hub.
  • Per capita consumption of chemicals in India is lower as compared to western countries, so immense scope for new investments.
  • Rise in GDP and purchasing power generates huge growth potential for the domestic market.
  • A focus on new segments such as specialty and knowledge chemicals.
  • Low-cost manufacturing.
  • Skilled science professionals.
  • World-class engineering and strong R&D capabilities.

Reasons to Invest

  • India is the third largest producer of chemicals in Asia and sixth by output, in the world.
  • The chemicals industry is a key constituent of the Indian economy, accounting for about 1.38% of the nation’s GDP.
  • India is currently the world’s third largest consumer of polymers and fourth largest producer of agro-chemicals.
  • India’s proximity to the Middle East, the world’s source of petrochemical feedstock, makes for economies of scale.
  • Strong government support for R&D.
  • Polymers and agro-chemicals industries in India present immense growth opportunities.
  • 100% FDI permitted through automatic route.
  • Chemical Sector is delicensed except for few hazardous chemicals.
  • Upcoming Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) & Plastic Parks will provide state-of-the-art infrastructure for Chemical & Petrochemicals Sector.
  • Trade in most of the chemicals is free except for those attracting provision of international conventions.

Foreign investors