India's chemical industry is likely to touch US $ 214 billion (approx Rs 13,91,000 crore) in the next 5 years from US $ 139 (approx Rs 9,03,500 crore) in fiscal 2014 with estimated growth of around 9 per cent per annum amid growing demand scenario.
A Tata Strategic Management Group study noted that factors such as boost to specialty chemicals and pharmaceuticals segment, low per capital consumption including agrochemicals, likely growth in demand from paints, textiles and diversified manufacturing base would act as key driver for the growth of the sector.
Manish Panchal, Practice Head -- Chemical & Energy, Tata Strategic Management Group, said , “The Indian chemical industry is an integral component of the Indian economy and has the potential to grow at ~9 per cent per annum to reach $214 billion by 2019. Key imperatives for the growth of chemical industry are to secure feedstock, right product mix and identify partnership opportunities to gain capital and technology support."
The report outlines the demand-supply scenario over the next 5 years and also the key growth drivers.
Presented at the FICCI-organised IndianChem Gujarat Conclave 2015, the report titled “Chemicals – A way of life” was released by Gujarat chief minister, Anandiben Patel at Mahatma Mandir here.
The demand growth will be primarily driven by domestic consumption because per capita consumption of most of the chemicals is much lower than global averages.
Moreover, with a very strong outlook for the key end user industries the demand of chemical products is expected to surge in the coming years, the report noted.
Also, the report projects robust growth of consuming sectors till fiscal 2025. As per the report, the market growth of packaging industry is likely to be 15 per cent per annum, while Construction sector is likely to grow by 16 per cent, auto industry at 12 per cent and apparel sector at 10 per cent.
The report also highlights critical issues the chemical industry is facing today like, availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business.
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.