INDIA-OPPORTUNITIES | Knowing India: Sectors

Chemicals

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 worldâs 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.

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 nationâs GDP.
India is currently the worldâs third largest consumer of polymers and fourth largest producer of agro-chemicals.
Indiaâs proximity to the Middle East, the worldâs 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.