A new world order is developing with tariffs and retaliatory tariffs announced almost in real-time. “Chemicals is one sector which may benefit from this development. Exports to the US may be re-directed towards us, so we need to be vigilant against dumping and predatory pricing which may happen in the next few months. A task force under the Ministry of Commerce had been set-up to closely monitor the situation,” said Deepak Mishra, Joint Secretary, Petrochemicals, Department of Chemicals & Petrochemicals (DCPC), Government of India at the India Speciality Chemicals Conclave organised by ASSOCHAM.

“We are working to develop a Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) framework for India. Once this is in place, products can be branded accordingly in conformity to international environmental norms and quality controls,” Mishra said adding that research and development is crucial for speciality chemicals business as it is more of a knowledge centric business.

“The industry must work together with academia to enhance capabilities for research. We have a great ecosystem of research labs in the country consisting of both government and private laboratories that are doing good work,” he added.

Addressing the gathering at the conclave, C M Saikanth Varma, CEO, Andhra Pradesh Economic Development Board said: “The scope for growth in Chemicals sector is phenomenal. Specialty Chemicals is a priority sector where the state is keen to attract investment. The country’s largest petrochemical hub is proposed to be set-up in Mulapeta where a deep sea port is also under construction. The state also has one of the most conducive Industrial Policy in the country right now. Mega and ultra-mega investments above 1000 crores and above 5000 crores respectively are eligible for tailor made incentives where the investors can put forth their wish list and the government try to meet them. With three industrial corridors passing through the state, six operational airports and access to ports and connecting ports the state offers seamless connectivity by road, sea and air.”

Sagar Kaushik, Chairman, ASSOCHAM National Council on Chemicals & Petrochemicals said, “The global market for chemicals is about $6 trillion, 60 percent of this is traded globally offering a vast opportunity across multiple geographies and the differential sectors. The specialty chemicals sector is about 20 percent of the global market. Asia Pacific is becoming much more compelling in terms of the demand development. The Niti Aayog has taken on-board the Chemicals sector to understand the strategic push to be given and identify key areas which need the support.”

Kapil Malhotra, Co-Chairman, ASSOCHAM National Council on Chemicals & Petrochemicals in his address said, “As the dust from the US Tariffs begins to settle, the chemicals sector has seen a surge in activities with enquiries coming in from across the globe. Enquiries for specialty chemicals have also been coming in from China as they are majorly into bulk chemicals. Upstream and downstream MSME players can play a key role in expanding the chemicals sector. If we channelize our energies with downstream units we can grow at a much faster rate than our current growth.”