Chemical Industry in India | A growing force Know Investment, FDI Policy, & Market
India ranks sixth in the production of chemicals worldwide.
![Indian Chemical Industry](https://eyesonnews.com/wp-content/uploads/2023/12/Chemical-Industry.jpg)
India is in the midst of becoming a chemicals manufacturing hub!
Chemical Sector: India ranks sixth in the production of chemicals worldwide. India accounts for 16% of the world’s dye production and has a 15% market share for colorants. This makes the Indian Chemical sector a 7% contributor to India’s GDP.
India ranks 8th in imports and 15th in exports of chemicals( excluding pharmaceuticals) and has a Chemical trade deficit of $ 15 Billion. With supply chain disruptions in China and Chemical reserves in the Middle East, India further earns a good stake in developing the chemical sector. The chemicals sector is de-licensed in India, barring a few hazardous chemicals.
India Oil Corporation Limited ( IOCL) has planned to set up the first maleic anhydride unit to produce specialty chemicals in Panipat, Haryana.
Types of chemicals produced in India
Chemicals produced in India fall into these broad categories.
Bulk chemicals |
Specialty chemicals(Zeolites, vanillin guaiacol, etc.) |
Agrochemicals |
Petrochemicals |
Polymers |
Fertilizers |
Production Linked Incentive(PIL) scheme and Chemical sector
PIL was launched in 2021 with a 5-year coverage. The scheme aimed to incentivize the production of Advanced Chemistry Cell (ACC) battery storage to reduce its prices. As of now, four companies have received incentives under the scheme. They are:
- Hyundai Global Motors Company Limited
- Rajesh Exports Limited
- Reliance New Energy Solar Limited
- Ola Electric Mobility Private Limited
PCIRs Scheme
The government has identified 4 petroleum, chemical, and petrochemical investment regions to boost their chemical production. They are Andhra Pradesh(Visakhapatnam), Tamil Nadu(Cuddalore and Nagapattinam), Gujarat(Dahej), and Odisha (Paradeep).
Chemical clusters in India:
Gujarat (with 11000 chemical manufacturing units, Gujarat is the largest state contributor to chemicals produced in the country) |
Maharashtra |
Andhra Pradesh |
Uttar Pradesh |
Odisha |
Tamil Nadu |
Chemical Industry Associations in India
- Indian Chemical Council.
- Indian Speciality Chemicals Manufacturers Association
- Department of Chemicals and Petrochemicals
- Dye Manufacturers Association of India
- Chemicals & Petrochemicals Manufacturers Association
Chemical sector share /stock prices:
https://www.indiainfoline.com/marketstatistics/sector-performance/nse-chemicals-sector
https://www.valueresearchonline.com/stocks/selector/sector/2/chemicals/?industry=42
Top Companies in the chemical sector in India
-
- Tata Chemicals(Tata Chemicals is the world’s third-largest producer of soda ash)
- United Phosphorus Limited
- BASF
- India Glycols
- Pidilite Industries Vikas
- WSP Phillips Carbon Black Limited
- Gujarat Heavy Chemicals
- Aarti Industries
- Gujarat Alkalies & Chemicals Limited
Petrochemical manufacturers in India
- Reliance Industries Ltd. (RIL)
- Indian Oil Corporation Limited (IOCL)
- Haldia Petrochem Ltd (HPL)
- Gas Authority of India Ltd (GAIL)
Here is all you need to know about India’s Chemical sector, its significant Products, Top Companies, Stock prices, and the PIL Scheme.