When discussing major economic sectors, one often overlooked gem is India’s chemical industry. Ranked 6th globally in chemical production, 3rd in Asia, and 14th in exports, India’s chemical sector is a vital hub for various industries like textiles, paper, paints, pharmaceuticals, and agrochemicals.
In agrochemicals, India is the 4th largest producer, manufacturing over 50% of technical-grade pesticides.
The industry’s growth, at 1.2-1.5 times the GDP growth, underscores its significance. India leads as the world’s largest castor oil producer, responsible for 85-90% of global exports.
Valued at $178 billion, India’s Chemicals and petrochemicals sector is set for a substantial investment of INR 8 lakh crore by 2025.
The nation exports chemicals to 175+ countries, contributing 13% to India’s total exports.
Moreover, India ranks 2nd globally in both chemical fertilizer production and consumption, with a remarkable 75% increase in per-hectare fertilizer usage over the last two decades.
Key Achievements
Scientists have uncovered a novel way to enhance the efficiency of converting waste heat into electricity using Metavalent bonding in quantum materials.
India boasts the 11th spot in global chemical exports (excluding pharmaceutical products) and stands 6th in imports. This showcases the country’s significant role in the chemical industry.
Notably, the Indian chemical sector provides employment to over 2 million individuals.
Statistics
In the fiscal year 2022-23, the production of Alkali Chemicals saw a 5% increase compared to the previous year. Major Chemicals witnessed a significant increase in production, reaching 130.22 lakh tonnes, a 2.19% rise compared to the previous year.
Additionally, the combined exports of Major Chemicals and Major Petrochemicals for the same period totaled INR 128.34 thousand crores. These figures reflect a positive trend in the chemical industry’s growth and productivity.
Growth Drivers
Indian Potash Limited (IPL) has partnered with Israel Chemicals Limited (ICL) to supply Muriate of Potash (MOP) from 2022 to 2027, aiming to boost agriculture production.
The Indian government is working on achieving self-sufficiency in Urea and DAP production through ‘Green Hydrogen.’
India has increased its refining capacity from 215 MMTPA to 251.2 MMTPA, ranking as the fourth largest globally.
The Department of Chemicals & Fertilizers has formed a Joint Task Force to explore the use of by-products from the Petroleum and Petrochemical Industries for crucial intermediates in the Pharmaceutical and Agrochemical Industries.
Prime Minister Modi has inaugurated 600 PM Kisan Samruddhi Kendras (PM-KSK) under the Ministry of Chemicals & Fertilizers. These centers will provide a range of services to farmers, including agri-inputs, testing facilities, and information on government schemes.
Industry Trends
- Agro-chemicals
India’s agrochemical sector is set to grow at 8-10% annually until 2025.
- Petrochemicals
The domestic demand for petrochemicals in India is forecasted to increase by 8% yearly over the next decade. Additionally, petrochemical capacity will expand by over 40% in the next five to seven years.
- Specialty Chemicals
Specialty chemicals contribute to over 50% of India’s total chemical exports. This is expected to exhibit the most accelerated growth, with projections indicating a value of approximately $50 billion by 2025.
Budget Allocation 2023-24
The Department of Chemicals and Petrochemicals receives INR 173.45 cr.
The Department of Fertilisers is allocated INR 1,75,148.48 cr.
India’s chemical industry shines as a global leader, making significant contributions to agriculture, technology, and the nation’s economy. With promising growth drivers, remarkable achievements, and proactive government initiatives, the sector is poised for a vibrant future. As the industry evolves and expands, it continues to empower millions with employment opportunities. India’s journey in the chemical domain exemplifies both progress and potential.
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