The Indian chemical industry has a broad portfolio and this diversity allows it to cater to various global markets and sectors. The market is growing due to urbanization, industrialization, and rising consumption, providing a stable base for production and fosters economies of scale. India is in an advantageous position due to access to a relatively low-cost labour force and a range of native raw materials, contributing to competitive pricing in certain segments, particularly in Basic and Specialty Chemicals. Moreover, Government's policies such as Make in India, Atmanirbhar Bharat, Chemical Policy, PCPIR and export incentives bolster the growth of the chemical sector.

However, the Indian chemical industry has also been facing various challenges that hinders growth. The industry faces stiff competition from established markets such as China, Europe, and the US, which have advanced technologies and higher production capacities.

While infrastructure improvements are underway, challenges related to transportation, logistics, and energy supply are affecting efficiency and cost competitiveness. Hence, building resilient supply chains and improving logistics infrastructure can enhance operational efficiency and lower costs.

Sustainability is another important issue where India needs to up its ante. As global standards for environmental sustainability become stricter, Indian companies may face challenges in meeting these regulations. Embracing sustainable practices and green chemistry will position Indian companies as responsible suppliers in the global marketplace. Also, increasing investment in R&D can lead to innovation, allowing Indian companies to move up the value chain and improve product offerings.

Moreover, investing in digital technologies can optimize production processes, minimize costs, and enhance customer interaction, ultimately improving competitiveness. Also, collaborating with global firms and leveraging foreign direct investment can bring in advanced technologies and expertise, enhancing competitiveness.

Overall, the Indian chemical industry possesses multiple strengths that position it favorably in the global market. By addressing existing challenges, investing in innovation, and focusing on sustainable practices, it can further enhance its competitiveness and expand its global market share.