The country’s chemical industry is expected to grow at around 9 per cent per annum to reach USD 304 billion by FY25, from USD 163 billion in FY18. The growth is likely to be driven by rising demand in end-use segments for specialty chemicals and petrochemicals intermediates. The country’s chemical industry is one of the fastest growing in the world, currently ranked the third largest in Asia and sixth globally with respect to output after the US, China, Germany, Japan and Korea. The domestic chemical sector (other than fertilizer) attracted FDI investment of USD 1.3 billion in FY18, which is about 3 per cent of the total FDI inflow. Noting that the domestic chemical industry’s growth is largely driven by country’s consumption growth story. Indian consumption is low. This makes India a very attractive destination to invest and grow. The chemical industry will be a key enabler and catalyst in achieving the target of USD 1 trillion manufacturing economy by 2028, from the current USD 380 billion.

(Economic Times)