Indian chemical industry is a diversified industry and is the mainstay of industrial and agricultural development of the country. The sector provides building blocks for several downstream industries. Government initiatives like CBEC’s Single Window Interface for Facilitating Trade (SWIFT), Make in India, and relaxation of environmental norms for the chemical industry, will likely encourage the growth of chemical sector. However, the industry faces some serious issues such as availability of key feedstock, infrastructure deficiencies, scale of operations, energy security and ease of doing business etc. These issues have hampered industry growth and it needs government interventions to achieve its true potential.
However, the industry has the potential to overcome the abovementioned challenges through adoption of alternate feedstock, increasing investment in R&D and achieving scale through collaboration. Further, the sector is likely to perform well on the back of higher demand from Agrochemicals and Speciality Chemicals segments. Significant growth in Petrochemicals segment too will provide the Chemical sector the much needed fillip.