The most important objective behind organizing the India Chem series is to highlight the investment possibilities in the country's chemical industry and give a fillip to "Make in India" initiative of the Government of India. Leading company and buyers from all over the world predominantly from Iran, China, Japan, United Kingdom, Spain, USA, Germany, Italy, Brazil, Turkey and South East Asian countries are participating as exhibitors, delegates and visitors.
Overview and opportunities in India
India's vibrant chemical and petrochemical industry plays a significant role in the economic development of the country. In terms of volume, the Indian chemical industry is the 6th largest in the world and the 3rd largest in Asia with the size worth $163 Billion.
Chemical industry is the mainstay of industrial and agricultural development of the country and provides building blocks for several downstream industries such as textiles, papers, paints, soaps, detergents, pharmaceuticals, varnish etc. Covering more than 80,000 products, this industry services large number of end use application industries. In India it is estimated that more than 2 Mn people are employed in this industry.
Indian chemical industry comprises of both small scale as well as large scale units. With initiatives like "Make in India" program gaining steam, investments, innovation and infrastructure are going to be the major thrust areas for chemical industry players. The current per capita consumption of chemical products in India is about 1/10th of the world average, indicating that the demand potential is yet to be realized. Moreover, India has a very strong outlook for the key end user industries. Going ahead, it is estimated that the demand of chemical products is expected to grow at ~9% p.a. over the next five years and is pegged at 1.2X GDP growth.
Globally, chemical industry is estimated at $ 4.7 Tn in 2017 it is also driven by demand from end use industries. Indian chemical industry is estimated to be valued at $163 Bn in 2017 and contributes 3.4% to the global chemical industry. It ranks 14th in exports and 8th in imports of chemicals (excluding pharmaceutical products) globally.
Indian chemical industry is one of the fastest growing in the world. Currently it ranks 3rd In Asia and is 6th largest market in the world with respect to output after USA, China, Germany, Japan and Korea.
Over the past few years, India has made considerable progress in its business environment, represented by Ease of Doing Business (EODB) matrix. Under its umbrella campaign "Make in India" with the objective of making business environment conducive to invest and grow, government of India implemented several structural reforms such as GST implementation and amending the land acquisition act and increasing transparency. As a result, India saw quantum leap in its relative position of EODB ranking from 130 to 100 in year 2017 and from 100 to 77 in year 2019.
Net imports have grown at 5.8% between 2014 and 2018 in volume.
The petrochemical market in India is expected to grow at a CAGR of 10% over the next 5 years to reach $ 100 bn by 2022
The specialty chemicals market has witnessed a growth of 14% in the last five years; the market size is expected to reach $ 70 bn by 2020