Indian chemical industry marching to $1 trillion by 2040

Currently valued at around $220 billion, the Indian chemical industry is expected to touch $300 billion by 2025 and reach the $ tillion mark by 2040, fuelled by growth in per capita income and consumption levels, said Arun Baroka, Secretary, Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers.

"It is predicted that demand for the speciality chemical segment is expected to grow at a pace of over 15 per cent CAGR. With 100 per cent FDI allowed through the automatic route and tremendous headroom for growth, the Indian chemical sector is well positioned for receiving large FDIs from global MNCs,” Baroka said.

He was speaking at the 16th annual India Chemical Industry Outlook Conference and Exhibition organised by the Indian Chemical Council (ICC), the apex national body representing the Indian chemical and petrochemical industry.

The ICC released the white paper prepared by McKinsey & Company at the conference, which presented the 2040 outlook for the Indian chemical industry and benchmarks for India’s manufacturing competitiveness vs other key global chemical clusters.

Earlier, Bimal Goculdas, President ICC and MD & CEO of DMCC Specialty Chemicals Ltd while welcoming the participants, said that the current edition of the conference offered a unique opportunity for everyone, whether it’s a CEO, business owner, a start-up, an entrepreneur, or simply interested in the latest trends and developments.

Dr Srikar Reddy, Joint Secretary, Commerce while delivering the keynote address highlighted the recent CEPA with UAE which will boost the Indian chemical trade. “The CEPA is expected to increase the bilateral trade in goods to $100 billion within five years of the signing and increase trade in services to $15 billion,” he said.