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India Chemical Industry 2H11

By Bharatbook Subscribe to RSS | April 2nd 2012 | Views:

India: Chemical covers the global, Asia- Pacific and India chemical industry overview, the country's industry performance in terms of production, capacitlity utilisation, imports and exports. It also covers the market trends in terms of investment, anti-dumping duties, government strategies and market outlook, plus the comparative matrix and Peer analysis for the industry leading players: Aarti Industries (Aarti); BASF India Limite (BASF);.

Executive Summary

Like Europe and the United States, India faces a slowdown in growth. But unlike those countries, the problem in India is that growth has been too rapid, thus leading to uncomfortably high inflation. The challenge for policymakers is to balance the fight against inflation while retaining sufficient growth.

Although the size of the global chemical industry is about USD 3tn, the Indian chemical industry has an output of around USD 80bn and ranks 12th in the world.

The chemical industry, which includes basic chemicals and its products, petrochemicals, fertilizers, paints and varnishes, gases, soaps, perfumes and toiletries and pharmaceuticals is one of the most diversified of all industrial sectors covering thousands of commercial products. It plays an important role in the overall development of the Indian economy, contributing about 3% in the GDP of the country. Industry Analysis

While the overall industrialization and economic growth in India provides major opportunities for growth of the chemical industry in India, some severe constraints and obstacles include:

• Surging of imports from the Asian and Middle Eastern countries

• Increasing number of producers from the Middle East (with a feedstock cost advantage) and China aggressively pursuing Indian markets because of very low tariff levels

• growing menace of dumping generic chemical products

• high cost of power, energy, finance and capital equipment

• internal transaction costs being one of the highest in India.

These include:

• Internal taxes – valued-added tax (VAT) rates substantially higher than those of other Asian countries.

• High logistics cost due to poor infrastructure

• State levies, entry taxes adding to the local transaction cost

Over the last decade, the Indian chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. With investments in R&D, the industry is registering significant growth in the knowledge sector composed of specialty chemicals, fine chemicals, and pharmaceuticals. Market watchers anticipate the Indian chemical industry will grow to USD 100bn by 2015.

For more information kindly visit :

India Chemical Industry 2H11


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Bharatbook - About Author:
Bharat Book Bureau, the leading market research information aggregator provides market research reports, company profiles, country reports, newsletters, and online databases for the past twenty four years to corporate, consulting firms, academic institutions, government departments, agencies etc., globally, including India. Our market research reports help global companies to know different market before starting up business / expanding in different countries across the world.

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