Know the top facts of India’s chemical industry in 2019

The global chemical industry has shifted to Asia post stringent environmental regulations that were placed in the EU and other parts of the world. In Asia, China, South Korea, and India have emerged the most preferred destinations for global chemical companies to establish manufacturing bases. 

China is facing acute environmental concerns shifting the chemical industries away from the populated areas. With the slowdown in China, India is gradually gaining prominence in the global chemical trade. Chemical distributors and suppliers are turning to India’s companies to procure their required materials. 

India’s chemical industry in 2019 

In 2019, India is the third-largest chemical manufacturer in Asia and ranked 7th globally. The present value of India’s chemical market is $163 billion but expected to be double to $300 billion by 2025. The sector is growing at a rate of 8-10% and touching the lives of over 2 million people. 

The sector is producing 80,000 commercial chemical products for domestic consumption and export to earn foreign reserves. The main products manufactured in India's chemical industry are Pharmaceutical, agrochemical, dyes and intermediate stuff, specialty chemicals, and fine chemicals. 

Contribution of main chemicals in percentages: 

• Fine chemicals -50% 
• Specialty chemicals - 20% 
• Pharmaceutical -20% 
• Agrochemicals - 3% 
• Dyes - 5% 

India contributes about 16% of the global market share in the dyes and pigment. Similarly, India is increasing the production capacity of specialty chemicals and bulk materials used in various industrial applications. Thus, the sector has attracted many chemical suppliers and buyers from different parts of the world. 

Critical issues in the Indian chemical industry 

Despite the growth in capacity and market share, the Indian chemical industry is facing some severe issues. Most of the companies are medium-sized and are dealing with the following problems: 

• Environmental impacts 
• Sourcing raw materials 
• Sustainability 
• Compliance with the REACH Registration, Evaluation, Authorisation, and Restriction of Chemicals
• Infrastructure upgrade to replace the obsolete technology 
• Improve the quality and capacity to be competitive in the global chemical trade. 
• Research and development to produce better quality products. 

China no longer overshadows India in the chemical trade and as a manufacturing hub. More local and international firms are making financial investments, given the bright future of this sector. 

Are you looking to buy chemicals from Indian manufacturers? 

If yes, make your chemical sourcing process seamless and effortless with the help of experts. Chemconn Sourcing is a leading chemical consultancy helping companies, buyers, and chemical suppliers in India to operate successfully. Contact them to book your consultation now.