Catalyzing Growth by Powering Industries

In recent years, India’s chemical industry has grown into a pillar of the country’s economic growth. It is expected that the industry will grow at a CAGR of approximately 10 percent over the next five years. The growth is spurred by growing domestic demand, favorable government policies and a burgeoning export market. India is one of the top chemical producers of the world. The sector comprises petrochemicals, specialty chemicals, agrochemicals and bulk chemicals, out of which specialty chemicals are experiencing the fastest growth. Modernization of the agriculture sector is also driving the production through agrochemicals.

The 'Make in India' program, Foreign Direct Investment (FDI) in the sector and the Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) policy have made the environment investor friendly. The Production Linked Incentive (PLI) scheme is also encouraging capacity enhancement and innovation. A key driver has been export performance and India has been a key exporter of chemicals. India's total chemical products exports stood at US$ 24.31 billion in FY22, increasing 38.67 percent YoY on a buoyant demand from markets including the US, Europe and Southeast Asia. India is placed in the global ranking due to its cost competitiveness, skilled workforce and strong R&D capabilities.

Although there are a few challenges including environmental regulations, raw material dependency, and infrastructure limitations, sustainability focused innovations and green chemistry are emerging, providing long term resilience. In general, this growth of the chemical industry shows its integral position in the industrial landscape of India, as a vital component of many sectors such as agriculture and healthcare, textiles and construction.

In this special issue, we introduce you to the top companies in this segment. Industry Outlook has identified the select few companies that have done particularly well with a high level of dedication. We have found that they have gone the extra mile in proving their commitment to excellence in an integrated manner. 

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