www.eximmitra.in December 2020


  • Accounts for nearly 3.4% of the global chemical industry by volume
  • Mainstay of industrial and agricultural development of the country; provides building blocks for several downstream industries
  • India is the 4th largest producer of agrochemicals and the 6th largest producer of chemicals in
    the world


  • Exports from chemical industry recorded y-o-y growth of 2.86% in 2019-20, increasing from US$ 43.76 billion in 2018-19 to US$ 45.01 billion in 2019-20.
  • Drug formulations and biologicals was the largest category of exports of chemical and related products in 2019-20, accounting for a share of 35.41 percent during 2019-20.
  • During April-November 2020-21, exports from the chemical and allied industry registered growth of 8.8% as compared to corresponding period of the previous year.
  • Export of miscellaneous chemicals registered growth of more than 54%, followed by drug formulation, biologicals (24.97%), bulk drug, intermediaries (17.13%), essential oils (15.8%) and fertilizer manufactured (11.07%).

Composition of Exports of Chemical and Allied Industries from India (2019-20)

Total Exports from Chemical and Allied Industry: US$ 45.01 billion

Source: Ministry of Commerce and Industry

Policy and Incentives

  • 100% FDI is allowed under the automatic route in the chemicals sector, subject to all the applicable regulations and laws
  • Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRS) are clusters that provide investors with a transparent and investment friendly policy and facility regime. PCPIRs have high-class infrastructure and provide a competitive environment conducive for setting up businesses.
  • Chemical Promotion and Development Scheme facilitates growth and development of the industry by supporting creation of knowledge products in the sector through studies, surveys, data banks, promotional material, etc.
  • Production Linked Incentive (PLI) Scheme under Chemical and Allied Sector promotes domestic production of bulk drugs and manufacturing of medial devices
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Enlistment of Hazira Port as a designated

Hazira port is enlisted as designated port for import of unshredded metallic scrap and waste.
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Export of Gems and Jewellery through Courier mode

Clarification on whether gems and jewellery is allowed to be exported through courier under the Courier Imports and Exports.
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Delegation of more powers to Authorised Dealer Category – I banks (AD banks)

With a view to further enhance the ease of doing business and quicken the approval process, AD banks have been delegated more powers in the broad areas of direct dispatch of shipping documents, “write-off” of unrealized export bills, set-off of export receivables against import payables, and refund of export proceeds.
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• Plans to develop export module for boosting exports through e-commerce - The Confederation of Indian Industry (CII) and e-commerce giant Amazon are planning to work together to construct an export module for MSMEs to push exports through ecommerce.

• India refuses to sign up for RCEP - India has decided not to join the Regional Comprehensive Economic Partnership (RCEP) pact saying it will not “compromise” on its core issues.

• China's exports to India drop 13 percent in Jan-Nov 2020, India's exports to China up 16 percent - China’s exports to India during the first eleven months of 2020 declined 13 percent, while India’s exports to China rose 16 percent in the same period, as per the customs data released by China.

• India asks EU to remove non-tariff barriers, standards to increase trade - Commerce and industry minister Piyush Goyal at the CEO forum of Sweden-India strategic business partnership asked the European Union to remove non-tariff barriers and standards so as to increase bilateral trade.

• Over 40 million N-95 masks, 20 million PPEs exported till now According to the Hon’ble Minister of Textiles, India now has above 200 producers of N-95 masks, and exported over 40 million of those masks and 20 million private safety gear (PPE) kits. She mentioned the nation has domestically produced over 60 million PPE kits and 150 million N-95 masks till October, from zero in March.

Delivery under FCA

‘Free Carrier’ (FCA) requires the seller to deliver the goods to the carrier or another person nominated by the buyer at the agreed point, if any, at the named place on the agreed date or within the agreed period. The delivery may be before customs clearance for export or after. This must be clearly spelt out in the contract.

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