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The Indian chemical industry is one of the oldest industries in India

Indian chemical industry is one of the established traditional industries in India, which plays an indispensable role in the country’s economic development. This sector is part of the basic commodity industry and a key input to industrial and agricultural development.

Indian chemical industry is one of the oldest industries in India, which has made great contributions to the development of industry and agriculture in India. It includes large and small units. The financial incentives given to small-scale units in the mid-1980s promoted the growth of SMEs in the sector. The chemical industry meets the needs of textile, leather, plastic, paper, printing ink and food industries.

Chemical industry is one of the most diversified industrial sectors, including basic chemicals and their products, petrochemical industry, chemical fertilizer, paint, gas, drugs, dyes, etc. The sector covers more than 70000 commercial products and supplies raw materials for many downstream industries, such as finished pharmaceuticals, dyes, paper, synthetic rubber, plastics, polyester, paint, pesticides, fertilizers and detergents. For many years, the industry has been developing in the direction of product innovation, brand building and environmental protection. In addition, customer focus is becoming more and more important in the industry.

The development potential of chemical industry is huge

The industry has both small and large-scale units (including multinational companies), producing thousands of products and by-products, ranging from plastics and petrochemicals to cosmetics and cosmetics. The industry consumes a significant share (about a third) of its own production. Industry accounts for 14% of the total index of industrial production (IIP), which shows its importance in the country’s industrial growth. A strong chemical industry has brought many economic and strategic benefits to the country. By the end of 2016, India’s chemical industry will reach 190 billion US dollars.

India’s chemical industry accounts for 13-14% of India’s total exports and 8-9% of its total imports. In terms of output, it is the 12th largest in the world and the third largest in Asia. At present, the per capita consumption of chemical products in India is only one tenth of the world average level, and there is great potential for further growth. India’s advantage lies in the production of basic chemicals, also known as commercial chemicals, which account for about 57% of India’s domestic chemical industry.

industrial structure

Chemical industry can be roughly divided into two parts: organic chemical industry and inorganic chemical industry. Organic chemicals account for more than half of all known compounds, including petrochemical products, pharmaceuticals, cosmetics, agricultural chemicals, etc. Inorganic chemicals include bases, dyes and dyes.

According to the classification of more functions, chemicals can be divided into basic chemicals, specialized chemicals and fine chemicals.

Alkaline chemicals account for the largest proportion of total chemical production in India. Alkalized products accounted for about 5.5 million tons of chemical products as of February 2010. The dye industry is one of the important sectors of Indian chemical industry, which has upstream and downstream links with textile, leather, paper, plastic, printing ink and food industries. Textile industry accounts for 70% of dye consumption.

Production trend of chemical industry

In India’s chemical industry, alkali chemicals account for the highest share of total production. Since fy02-fy09, alkalized chemicals account for about 70% of the total output, followed by organic chemicals, accounting for about 20%. On the other hand, the proportion of dyes, dyes and pesticides is still very low; however, the production of dyes and dyes has been growing steadily since fiscal year 2004 due to their growing importance in the textile, leather, plastic and food industries. Nevertheless, the production of organic chemicals has been growing very slowly. In fy03-fy09, the production of inorganic chemicals increased steadily, while the production of alkali and organic chemicals increased steadily, so the compound annual growth rate of the sector was healthier than that of the whole industry.

In the field of alkali chemicals, soda ash has been the largest in the total output since FY03. However, since the 2008 fiscal year, the output of caustic soda tail has exceeded that of soda ash; the proportion of caustic soda increased from 29% in FY04 to 38% in FY09.

In the field of organic chemicals, the share of carbon black has exceeded 70% of the total production since fiscal year 2004, while in the field of inorganic chemicals, methanol, acetic acid and acetaldehyde account for more than 50% of the total output of 19 products.

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