Date: February 09, 2021 / 3:00 pm
The Indian chemical industry has a huge role to play to make India a $5 trillion economy by contributing around $300 billion to the GDP by 2025. India's chemical industry outlook 2021 focuses on six pillars - Creating R&D ecosystem, Setting up one stop investment destination, Providing alternative chemicals destination, Rolling out PLI scheme, Sustainable chemistry & circular economy and Energizing PCPIR.
First, to become a global hub in speciality chemicals, India must focus on research and development and need to come up with new products in a big way.
Second, Indian companies have inherent advantages in the production of chemicals and there are many success stories in the specialty chemical space which needs to be leveraged by providing them with a lower risk environment and this can result in substantial increase in business. By taking 2-3% of global market share away from China, will result in doubling of Indian chemical industry by encouraging investment through incentives and ease of doing business and lowering the risk of investors.
Third, the supply chain disruptions in China due to COVID-19 has led western countries to start looking for alternative sources to China for chemicals thereby creating opportunities for Indian companies for a limited time window and Indian companies should leverage it in a big way.
Fourth, Production Linked Incentives (PLI) is a good measure as it incentivises the industry to quickly put up investment and start commercialise sales. For Make in India, to be successful, base industries like chemicals need to be incentivised. The government should speed up PLI on chemicals thereby driving significant growth in the industry.
Fifth, both the US and European Union are speeding up sustainability for the chemical industry. The Indian chemical companies that are exposing will have to align themselves with the goals. It also gives the Indian Industry an opportunity to adopt global best practices. The sector also needs support through regulations as well as incentives.
Sixth, there is an urgent need to upgrade the infrastructure of PCPIRs (Petroleum, Chemicals and Petrochemicals Investment Region) to have better master planning and incentivize investment in the regions.
1.Getting an overview on Indian Chemical Industry Outlook 2021 keeping in view the Indian and Global scenario
2.Focus on increasing Indian Chemical exports and decreasing imports of raw materials and intermediates
Key Discussion Points
- Creating robust R&D ecosystem to come up with new products
- Setting up one stop destination for investment
- Providing alternative chemicals destination
- Rolling out PLI Scheme
- Making PCPIR more effective
- One stop solution for India's investment in chemical