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.

The agrochemical sector in India has the potential to be a growth engine for the Indian chemical industry. The sector has the potential to contribute to making India ‘Aatma Nirbhar’ in the global chemical market. But, the industry is yet to realise its potential due to numerous challenges that needs to be addressed in a time bound manner.

Technology has always been the core of any development. However, the rapid development has brought a major issue of sustainability for businesses all over the world. With every country talking about sustainability, digitalization is emerging as the main driver for sustainable development. Digitalization and sustainability are two of the most powerful market influences in today’s corporate landscape.

The Public Sector Undertakings (PSUs) have been proved as main pillars of India’s economic growth. PSUs have played major roles in tackling serious socio- economic and financial issues in post-independence India. Our PSUs have helped bridging the income gap, imbalance in regional economic development and wide spread unemployment. At this point of time, Public sector is seen as an instrument of development for self-reliant and steady economic growth.

R&D is one of the important propellants’ of the industry’s growth. There are numbers of benefits of investing in R&D that are beyond innovation. The creation of innovative products not only adds new revenue streams but also increases brand visibility as well as opens up avenues for collaboration and PPP. The Government of India offers various tax incentives to encourage investments in R&D.

Digitization is going to play a major role in making the Indian chemical industry globally competitive. However, the current digitization of the Indian chemical industry is below average. Digital will have a significant impact on many areas of the chemical industry, with the potential to change value chains, lead to higher productivity and more innovation, and create new channels to market.

MSME can be the backbone for the existing and future high growth businesses with both domestic and foreign companies investing in MSMEs and make significant impact in the area of indigenisation. The new wave of MSME’s should enable the development of a business eco system that enables and continuously support business that are gearing to deliver the right product, the right quality, the right solution and the right service at a competitive price, both in domestic and international markets.

Role of Start-ups to Make Chemical Industry Aatma Nirbhar

For an industry born out of innovation and pivotal to modern society, however, the Indian chemical industry will remain strong. The effects of the Coronavirus pandemic will certainly echo through many industries and their supply chains, providing an opportunity to learn and most likely change the way they work in the future.

India is the sixth largest producer of chemicals globally and third largest producer in Asia in terms of output. The country ranks third globally in the production of agro chemicals and contributes around 16 per cent to the global dyestuff and dye intermediates production. The sector, covering more than 70,000 commercial products, is projected to reach $304 bn by 2025 from $178 bn in 2018-19.