The 12th biennial International Exhibition and Conference, India Chem 2022, was recently inaugurated at Pragati Maidan in New Delhi. The theme for this year’s event is “Vision 2030: Chemicals and Petrochemicals Build India”, highlighting the significant role of these industries in the country’s economic development.
The Status of the Chemical Industry in India
India has an incredibly diversified chemical industry, which includes sectors such as bulk chemicals, specialty chemicals, agrochemicals, petrochemicals, polymers, and fertilisers. Globally, India is recognized as the fourth largest producer of agrochemicals, trailing behind the United States, Japan, and China.
India also ranks as the sixth-largest producer of chemicals worldwide. The country’s reputation for chemical production extends to dyes, where it stands as the second-largest manufacturer and exporter, contributing approximately 16% of global production.
The chemical industry in India is largely de-licensed, with the exception of a few hazardous chemicals. This means most chemical processing and manufacturing activities can be undertaken without obtaining a specific license, fostering ease of operation.
On the international stage, India continues to be a key player in chemical commerce. Excluding pharmaceuticals, India ranks 14th in global chemical exports and 8th in total chemical imports.
Government Initiatives Related to the Chemical Industry
The Indian government continues to show its support for the chemical industry through several initiatives. For instance, in the Union Budget 2022-23, the administration allocated Rs. 209 crores to the Department of Chemicals and Petrochemicals, signaling its commitment to further bolstering this critical sector.
Furthermore, the government has introduced Production Linked Incentive (PLI) schemes designed to promote Bulk Drug Parks. These schemes aim to stimulate domestic production capacities, thus reducing the reliance on imports.
In line with this, the government is planning to implement a PLI system that offers 10-20% output incentives for the agrochemical sector. The objective is to nurture an end-to-end manufacturing ecosystem through the growth of chemical clusters.
Taking a long-term view, the government has also established a vision for the year 2034 for the chemicals and petrochemicals industry. This strategic plan seeks to increase domestic production levels, reduce import reliance, and attract more investments into the sector.
Overall, the Government’s initiatives highlight its strategic focus on developing the country’s vast potential in the chemical industries while also facilitating India’s growth as a global contender in chemical production.
