The chemicals sector is amongst the most important manufacturing industries across the globe, contributing to improvement in productivity, efficiency and quality across several end-use industries. Over the last two decades, the global chemical industry has been concentrated in largely in China, EU and U.S. With the outbreak of the COVID-19 pandemic, there was a sharp decline in global production driven by demand slowdown due to lockdowns as well as supply chain disruptions in both feedstock and end-product movement.
India showcased continuous growth and outperformed the global industry in the past decade driven by strong domestic demand, export competitiveness and an enabling ecosystem owing to:
As a result, global companies have turned towards India to ensure continuous supply of high-quality chemicals at competitive prices, not just to meet domestic demand in India but also to serve export markets. India’s chemical industry is expected to grow at 7 to 8 per cent CAGR to reach ~USD160 bn by 2025 and account for 3-3.5 per cent of the global chemical industry according to KPMG in India’s analysis on primary and secondary research.
KPMG in India analysis based on primary and secondary research
Note: Constant exchange rate of 1 EUR = 1.18USD has been used across years
De-licensed and deregulated industry
Growing chemicals infrastructure
Financial support and subsidies
Increasing availability of raw material
Location advantage and FTAs
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