Indian Chemical Industry is sixth largest in the world and third largest in Asia in terms of volume, having a market size of USD 109 billion. The industry is growing at a rate of 9 percent per annum and is expected to reach USD 200 billion by 2020. The total production of Indian chemical industry was 21.2 million tonnes during 2014-15.
The Indian Chemical industry is one of the most diversified sectors, covering more than 70,000 commercial products which includes basic chemicals and its products, petrochemicals, fertilizers, paints, varnishes, gases, soaps, perfumes, toiletry and pharmaceuticals. India accounts for approximately 16% of the world production of dyestuff and dye intermediates.
The current market size of petrochemical industry in India is USD 40 billion which estimated to touch USD 100 billion by 2020 at a CAGR of 14 percent per annum. Indian Chemical Industry is witnessing a robust growth due to domestic market dependence on agriculture, rising per capita consumption, low cost of manufacturing, availability of skilled manpower and strong research and development capabilities.
The Indian Government allows 100 percent FDI through automatic route in chemicals sector allowing free trading and production of chemicals except for a few hazardous chemicals. Some of the major foreign players operating in this sector in India are BASF (Germany), ADEKA (Japan), Croda (UK), DuPont and Dow Chemicals (USA) and Rhodla (Belgium).