Credit rating agency ICRA has released a research report on Indian specialty chemicals industry. While India is having only around three per cent share in global specialty chemicals industry, it is poised to grow at a CAGR of 11 per cent till FY26.
Here is a look at the key emerging trends in India’s specialty chemicals sector.
India accounts for only 3.6 per cent of the total specialty chemicals market
Agrochem and, dyes and pigments account for 51 per cent share in Indian specialty chemicals market, driven by export of insecticides and demand from textile industry
While margins have dipped from around 22 per cent to 17 per cent during FY2021-24, it is expected to improve FY26 onwards
Construction chemicals, flavours and fragrances and dyes and pigments can drive the growth of the domestic specialty chemicals industry