Can you please introduce our readers to the Indian Chemical Council?

The Indian Chemical Council (ICC) is the apex national body representing all branches of the chemical industry in India such as organic & inorganic chemicals, plastics & petrochemicals & petroleum refineries, dyestuffs & dye-intermediates, fertilizers & pesticides, specialty chemicals, paints etc. The Indian Chemical Council is dedicated to the growth of the Indian chemical industry. Established in 1938, ICC has over the years grown its functions and offerings to cater to the varying needs of the industry.

How has India’s chemicals industry evolved over the past decade?

The Indian chemical industry has seen spectacular growth over the last decade. The growth is likely to continue for many more years. It is projected to reach US$402 billion by 2025. The reasons for this are due to the growth of the economy – which is at 8 % GDP annual growth - a large young population, massive infrastructure investment, a rise in middle income group, thriving retail outlets, 100 smart cities, modernization of agriculture and low per capita chemical consumption base. As a result, in the past decade, there has been robust growth in refining, petrochemicals, paints, agrochemicals, pharmaceuticals and specialty chemicals.

India’s specialty chemical industry is now at US$32 billion. Are you seeing a move away from the production of base chemicals towards the production of higher value-added derivatives?


The demand for base chemicals in India is still very large. In fact, there is a large deficit in base chemicals and building blocks exist, which presents an opportunity for investors. For example, methanol acetic acid, VAM PvOH styrene monomer acrylates, and SAP phenol are a few examples where large imports are taking place. Specialty chemicals demand is growing at a fast pace and the sector requires investment, technology, local application development and R&D. The opportunity in this segment is tremendous and India, with a strong respect for IPR, is probably best suited for hi-tech chemical companies to come in with investments and enjoy a long-term sustainable growth.

How is the ‘Make in India’ initiative impacting local chemicals manufacturers?

‘Make in India’ is a massive government initiative to attract investment & technology from global industry leaders. With a population of more than 1 billion and an increasing purchasing power, local manufacturing is an attractive proposition. China, the United States, France, Japan and the UAE are part of ‘Make in India’ programme. Companies like Boeing, MV Agusta, GE, General Motors and Cummins have already committed resources. Moreover, many hi-tech companies have set up their R&D facilities in India as there is a large pool of highly skilled technical manpower

What are the main challenges and advantages for the international chemicals producers wanting to invest in India?

The main advantage for chemical companies of India include the prospects of long-term sustained GDP growth of 10%, a young population base with a growing purchasing power and a large potential market base. Moreover, India offers availability of highly skilled technical manpower, a strong IPR regime as well as a strong legal system in place. Finally, India has a good level of ease of doing business and a favorable stable industrial climate. The challenges include the fact that the infrastructure is still developing and there is a lack of chemical ports and chemical parks with common effluent treatment.

The National Action Plan sets out to simultaneously advance India’s development and climate change-related objectives. Are you seeing the industry prioritize sustainability?

The Indian chemical industry is adopting sustainable practices to meet international quality standards. The draft National Chemical Policy lays great emphasis on climate change related objectives and sustainable operations of all the activities.  More members of the Indian chemicals industry are adhering to Responsible Care - chemical industry’s voluntary initiative.  With stricter regulations and the chemical industry’s desire to go beyond regulation, we can clearly see that most members are prioritizing sustainability.

How has the new single Goods and Services Tax (GST) impacted India’s chemicals manufacturers?

A single GST tax has improved the ease of doing business tremendously. For the manufacturers, input credit has become easy and the system is more aligned to global GST models. The government has been proactive and has been easing the systems to facilitate business and over the next few years the GST methodology and practices is expected to be completely in line with global standards.

What are your expectations for India’s chemicals industry over the coming three to five years?

The industry leaders in the chemicals sector expect sustained uninterrupted growth in the coming three to five years riding on domestic market growth. The global turbulence, due to oil price movement and possible trade flow changes as a result of protectionist regimes across the world, may not impact India as adversely due to its inherently large domestic market strength and stable political regime via a vibrant democracy.

Can you provide a final message to the international readers of Global Business Reports on India’s chemicals industry?

The growth of the chemicals industry in India will continue in double digits for many more years. The performance of the chemicals sector in the stock market has been excellent in the past five years and it has outperformed most sectors. This is likely to continue. The final message to the readers and the investors would be – participate in the growth of India, invest in the chemicals sector and deliver your shareholder robust returns for many years.