Chemical Industry in India is one of the fastest growing industries under the Indian Economy. At the same time it is also one of the oldest domestic industry of India which started working soon after India's independence in 1947. From those early years, the Chemical Industry in India continued to contribute to the Economic Growth of Indian Economy. At present, the industry accounts for almost 13% of Indian GDP.
The Chemical Industry in India which generates almost 13% of country's total export is growing annually at a growth rate anywhere between 10% and 12%. Now we can discuss the growth rates and other important things of Chemical Industry in India sector wise.
The Chemical Industry in India is based on the idea of Diversification. The industry is a multi product and multi-faceted one. Depending on these product categories we can divide the Chemical Industry in India in following sectors:
- Inorganic Chemicals-In this sector the growth rate is near about 9% and the chemicals produced in this sector are mainly used in alkalis, fertilizers, detergents and glass.
- Drugs and Pharmaceuticals- This sector of Indian Chemical Industry holds the 4th place in the world in terms of volume. Export led growth is the characteristics of this sector.
- Plastics and Petrochemicals-This sector of the Indian Chemical Industry is the fastest growing one among all the sectors. Reliance Petrochemical is the company which dominates this sector.
- Pesticides, Fertilizers and other Agro-chemical products- This sector of the Chemical Industry in India account for almost 2.5% of the global market. It possesses an impressive domestic market growth rate of 10%.
- Specialty and Fine Chemicals like Dyes and Paints- This sector is characterized by high level of fragmentation. The sector is involved in production of paints, dyes, inks,polymers and a lot of other chemical products. The sector has a growth rate of near about 12%.