Chemical Industry Overview
India ranks twelfth in the world for production of chemicals by volume. India’s chemical industry contributes about 3% to the nation’s Gross Domestic Produce (GDP). The industry has a turnover of about US$ 30 billion, and accounts for about 14% in the general Index of Industrial Production (IIP) and 17.6% in the manufacturing sector. It also accounts for about 13-14% of total exports and 8-9% of total imports of the country. The industry is mostly concentrated in western India, which accounts for 45-50% of the total industry size.
The Indian chemicals industry comprises both small and large-scale units. While the fiscal concessions granted to the small sector in mid-eighties led to the establishment of a large number of units in the Small Scale Industries (SSI) sector, the industry is currently in the midst of major restructuring and consolidation. With the shift in emphasis on product innovation, branch building and environmental friendliness, this industry is increasingly moving towards greater customer orientation.