According to the India Brand Equity Foundation (IBEF), India is the sixth-largest chemical producer in the world and the third largest in Asia. The diverse types of chemicals produced include alkalis, agrochemicals, fertilisers, dyes, and petrochemicals such as polymers.
The Indian chemical industry continues to grow and expand. Higher demand for domestic chemicals in industries such as food processing, home care, and personal care drives this push to increase the manufacture of specialty chemicals in India.
India is an Attractive Hub for Chemical Companies
The Indian government fully supports the chemical industry in India. The government does not regulate most of the chemicals produced in the country except for a few extremely hazardous types. By de-licensing the industry, they have made it easier to manufacture most chemicals.
The government increased the budget of the Department of Chemicals and Petrochemicals to provide more support and investment in the industry. They have plans to continue supporting chemical manufacturing by incentivizing the production of agrochemicals.
They have established investment regions to create modern infrastructure to support increased production and employment within the chemical sector. A major goal is to increase the amount of skilled talent in manufacturing to increase India’s global competitiveness.
Chemical Export from India
With the global supply chain issues during the pandemic, more countries have turned to India to meet their chemical demands. India ranks 14th in chemical exports, and they project continued growth in the chemical industry despite the global economic downturn from the pandemic.
Many Indian specialty chemical producers have increased their production to meet the growing and projected demand from domestic and foreign consumers.
Because of shipping difficulties associated with large company exports, India’s small and medium-sized companies have filled some of the demand.
Organic Chemicals from India
India produces several organic chemicals used in industries like manufacturing, pharmaceuticals, and farming. The export of these organic chemicals to other countries continues to increase due to the marketing efforts of CHEMEXCIL, the Chemical Export Council.
The major organic chemicals where India has focused on increasing domestic production are acetic acid and formaldehyde, which are derivatives of methanol, pyridine, phenol, alkyl amines, ethyl acetate, and maleic anhydride.
India has focused on increasing the number of organic chemicals produced domestically to reduce the amount they must import to meet the demand.
By resolving many manufacturing and infrastructure challenges, they have become a bigger chemical exporter and an increasingly important part of the global chemical industry.
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