Overview: Indian Chemical Logistics Market

India's chemicals logistics industry is witnessing phenomenal growth due to rising domestic consumption, increased exports, and the country's favorable geography for freight transportation. India is the third-largest producer of chemicals in Asia and sixth largest in the world, contributing around 3% of India's GDP. The market size of the Indian chemicals industry is expected to grow from US$ 220 billion in 2022 to US$ 800 billion -1 trillion by 2040, reflecting a massive growth opportunity.

Globally, the chemical logistics industry is growing rapidly due to increasing demand for chemicals from sectors like automotive, transportation, construction, and healthcare. The global chemical logistics market was pegged at US$ 170.98 billion in 2020 and is expected to reach US$ 279.47 billion by 2026, with a CAGR of approximately 8%.

Whereas the Indian chemical logistics market was valued at around US$ 1.1 billion in 2020 and is expected to grow at a CAGR of approximately 10% during 2021-2026. The growth in the market is attributed to an increase in chemical production, rising demand for end-use industries, and government initiatives to improve transportation infrastructure. Additionally, the growth in e-commerce and online platforms is further boosting the demand for efficient logistics services. .

The Government of India has come out with PM Gati Shakti and National Logistics Policy to develop a stronger logistics ecosystem in the country. The National Logistics Policy aims to ensure quick last mile delivery, end transport-related challenges, save time and money of the manufacturers and prevent wastage of the agro-products amongst others.

Indian Chemical News’ forthcoming 'ChemConnect' Conference on Indian Chemicals and Petrochemicals Logistics' has lined up so far the country's most comprehensive dialogue on the topic that is scheduled on Friday, October 13, 2023, cutting across a number of Business Sessions, will help develop the most meaningful and business enabling idea exchange that will seek to further Government and industry's growth aspirations. The discussions will help curate a comprehensive review of the chemical logistics sector, understanding the challenges as well as the opportunity that the segment offers. It also aims to develop a synthesis of ideas on policy initiatives and support, long and medium- term action for the sector from within and outside in order to bring in momentum and catalyze an action plan that is the need of the hour.