Indian Chemical Industry The Next Eye Catchy Sector!

Indian Chemical Industry: The Next Eye Catchy Sector!

The Indian Chemical Industry is growing in leaps & bounds not only in India but also  the world. It not only plays a vital role in our economic development but also serves  as an important ingredient for the industrial and agricultural development. The  Indian Chemical & Petrochemical Industry is currently valued at close to $180 Billion  i.e. ~3% of the global chemical industry and is expected to reach $300 Billion by  2025. 

India’s Specialty Chemical Industry has been esteemed at $35 Billion and is well  tranquil for growth. It has grown by 13%-14% in the last five years and is expected  to reach $70 Billion by 2025. It is to be noted that a sharp fall in the crude prices  from $100 to $35/barrel has improvised the margins for alluring chemical players.  The Colorant Chemical Industry is worth $7 Billion in India thereby exporting more  than 72% of the annual production. 

A huge domestic consumption is major growth driver behind India’s Chemical Industry. Indians consume more than 40% of its output with promising new heights.  The growing urbanization and increasing disposable incomes of the Indian economy  is fueling substantial growth of the domestic Chemical Industry. Chemicals  constitute close to 5.5% of total Indian exports. 

After the giant dye manufacturer from China has been shut down due to  governmental policies, which has created a fairly huge supply glut and increased the  profitability of Indian companies. As a key ballooning element for developing  economy, the government has permitted cent percent FDI through automatic route  and de-licensed the manufacture of most of the chemical products except a few  hazardous chemicals. 

Notably, such chemical majors have a commanding market share in their respective  segments. Great rallies can be expected in the Indian chemical markets till the time  Chinese competitors become operational again. 

This will create volatility in the prices of the chemicals and India is set to be  benefitted the most from this in the near future. VSRK is all engaged to earn the  revenue from the same for its reputed investors.

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