Thread by @FinterestC

#Didyouknow

Globally, India is the third-largest consumer of polymers, fourth-largest producer of agrochemicals and sixth-largest producer of chemicals?

Follow a thread on the Chemical sector overview in India.

#chemicals #sectoranalysis

1)Covering more than 80,000 commercial products, India’s chemical industry is extremely diversified and can be broadly classified into bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers and fertilisers.

2)The Indian chemicals industry stood at $ 178 bn in 2019 and is expected to reach $ 304 bn by 2025 registering a CAGR of 9.3%. The demand for chemicals is expected to expand by 9% p.a. by 2025. The chemical industry is expected to contribute $ 300 bn to India’s GDP by 2025.

3)The Indian specialty chemicals sector is expected to increase at a CAGR of 12.4%, from $ 32 bn in 2019 to an estimated $ 64 bn by 2025.
The specialty chemicals constitute 22% of the total chemicals and petrochemicals market in India.

4)The petrochemicals demand is expected to record a 7.5% CAGR between 2019 and 2023, with polymer demand increasing at 8%. The Indian agrochemicals market was worth ~$ 4.5 bn in July 2021bh.

5)According to Expert Market Research (EMR), the market is expected to increase at a CAGR of 8.6% between 2021 and 2026 to reach ~$ 7.4 bn.
According to the Basic Chemicals, Cosmetics & Dyes Export Promotion Council, the export value of dye in India stood at $ 2.3 bn as of FY21.

6)A 2034 vision for the chemicals and petrochemicals sector has been set up by the government to explore opportunities to improve domestic production, reduce imports and attract investments in the sector.

7)The government plans to implement production-link incentive system with 10-20% output incentives for the agrochemical sector; to create an end-to-end manufacturing ecosystem through the growth of clusters.

8)Despite the current pandemic situation, the Indian chemical industry has numerous opportunities considering the supply chain disruption in China and trade conflict among the US, Europe and China.

9)Anti-pollution measures in China will also create opportunities for the Indian chemical industry.
In terms of fiscal incentives like tax breaks and special incentives through PCPIRs or SEZs to encourage downstream units will enhance production and development of the industry.

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