This report profiles India’s chemicals industry, discussing market trends through 2014 and outlook for 2015 and beyond. The report also highlights leading players in the sector including Tata Chemicals Ltd, UPL Ltd and Pidilite Industries Ltd.
India’s chemical industry has played an important role in the development of the economy. The industry includes basic chemicals and chemical products, petrochemicals, agrochemicals, dyes, paints and varnishes, synthetic fibers and industrial gases. Chemicals and chemical products industry is among the 22 industry groups in the manufacturing sector tracked by the index of industrial production.
Domestic industrial production saw a recovery in the fiscal year ended March 2015. However, contrary to the general industrial trend, the chemicals and chemical products sector saw a slowdown due to the decline in global and domestic demand. Lower production combined with lower price growth shrunk the overall growth of the sector.
Moreover, domestic production was insufficient to meet the demand; as a result a large proportion of the requirement was met through imports. This has disturbed the sector’s trade balance as shown by the rapid increase in trade deficit during the last five years. The sector is also adding to the trade deficit of the economy, despite having a substantial export share.
Going forward, the sector is expected to continue on its growth track, backed by a growing construction sector, a large textile sector, and a growing need for agrochemicals. The launch of “Make in India” campaign and other such government initiatives will further add to the growth of this sector.
• Chemicals and chemical products are one of the major industry groups tracked by the index of industrial production (IIP). It constitutes about 10.1% of the industrial output represented by IIP and grew at a CAGR of 2.1% during fiscal years 2007-12.
• In the period 2009-14, chemical exports saw a double-digit annual growth rate of 18%. As of FY14, organic chemicals accounted for 41% of the Indian chemical exports, followed by plastic products with a contribution of 19%.
• Chemical imports accounted for 9% of the country’s total imports as of FY14 as domestic production was insufficient to meet the huge demand.
• In FY15, the chemical manufacturing index declined by 0.1% y/y while the general index grew by 2.8% y/y. Thus, the sector underperformed compared to the general industrial production.
To Purchase This Report - Click
Iran’s economy expanded by 3.7% during the 2017-2018 Persian calendar year (ended March 20), according to a report released by the Central Bank of Iran (CBI) on June 16. Further revisions of ... more
Belarus' economic growth was higher than expected in the first half of this year topping 4.5%, which is almost twice the 2.8% forecast at the start of the year. The government is using the windfall ... more
Russia’s recovery continues but remains fragile. Growth in the first quarter remains around the 2% mark and no surprises are expected for the rest of the year.
The GDP growth forecast for this ... more