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Chemical Industry In India

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The chemical industry is one of the oldest domestic industries in India, contributing significantly to both the industrial and economic growth of the country since it achieved independence in 1947. This industry currently produces nearly 70,000 commercial products, ranging from cosmetics and toiletries, to plastics and pesticides.

The Indian agrochemical, petrochemical, and pharmaceutical industries are some of the fastest growing sectors in the economy. With an estimated worth of $28 billion, it accounts for 13 percent of the country's total industrial production and 16.2 percent of the total exports from the Indian manufacturing sector.

With a special focus on modernization, the Indian government took an active role in promoting and advancing the domestic chemical industry. The Department of Chemicals & Petro-Chemicals, which has been part of the Ministry of Chemicals and Fertilizers since 1991.

According to a report, "the strengthening of the green movement and the growing protests against environmental pollution in many Western countries provide an opportunity to India to emerge as a prominent player in the global dye market?.

Concerns Key Success Factors

1.Focus on exports as supply will exceed demand

2.Building world size plants using latest technology to achieve economies of scale

3.Per capita consumption is one of the lowest in the world and therefore focus on achieving this unfulfilled demand

4.Gap in demand & supply of synthetic rubber and detergents which needs to be addressed.

Chemical Industry - Global Trends

Global chemical production growth (excluding pharmaceuticals) slowed down considerably since the start of the year. Global growth in 2005 was only 2.7% compared with 4.7% in the previous year. High energy costs affected the chemical industry and its customer sectors.

In Europe, chemical production grew by 0.8% in 2005. When compared internationally, growth was slight, mainly because of lower domestic demand, in particular from industry. Foreign trade was also weaker than in the previous year. Only Germany reported surprisingly strong growth in chemical production of 4% in 2005. This was principally due to exports and solid industrial growth.

Chemical Industry In India

Chemical Industry is one of the fastest growing Industries globally. Demand in different segments of chemical Industry like pharmaceuticals, Inorganic Chemicals, Organic Chemicals, Fine and specialties, Bulk Drugs, Agrochemicals, and Paints and Dyes are also increasing rapidly. Industry players are following state of the art techniques and extensive research and development policies to fulfill this increasing demand for chemical.

India was importing chemicals during early 1990s, but now India has become a net exporter of chemicals because of implementation of several large scale petrochemical plants, and tremendous growth of exports in sectors like bulk drugs and pharmaceuticals, pesticides, and dyes and intermediates.

Currently India is a strong player in chemicals export. Following are some facts related to Chemical Industry in India (Analysis based on Year 2005):

·13% of total export

·13% of total industrial output and 7% of GDP

·10%-12% growth rate annually

·2% of global chemical industry

·Indian pharmaceuticals industry ranks 4th in volume and 13th in terms of value in world

·2nd largest producer of agrochemicals in Asia

Factors Affecting Indian Chemical Industry

There are few factors resulting growth of Indian Chemical Industry. Some important factors are as following:

1. Friendly Government Policies: In recent years government policies have become more and more industry friendly, following the similar global industry friendly trend. Government is eager to provide land and basic infrastructure for new industry establishments, because industries are powerful elements in contributing rapid growth of development.

2. Increasing Demand: There is increase in demand of chemicals globally, be it pharmaceutical, agrochemicals, adhesives, fertilizers, or other chemicals. So industry players are trying to increase their current production to match increasing demand.

3. Technology factors: The change in technology is also a factor in development of chemical industry. Newer machinery, better technology, and research are major cause behind growth rate of this industry.

4. Involvement of major players: Involvement of major industry players in chemical industry, as well as acquisition of overseas companies by Indian Giants led strong worldwide reputation of Indian chemical manufacturers.

5. Presence of raw materials: India is rich in minerals and other raw materials required in production of chemicals that decreases input capital required and increases overall revenues of manufacturers.

In coming years industry is going to grow with more than current growth rate. In 2005 its contribution to GDP was 7%, which increased to 13% in year 2007. Domestic demand is also increasing so we don't need to look for exports always. Past few years witnessed tremendous growth and we can expect similar trends in future too.

Shanti Chemical Works is a partnership firm with a commitment to manufacture and supply Best Quality Sodium Silicate and Potassium Silicate as per customers’ specifications. The firm believes in Total Customer Satisfaction and works towards achieving it. For more information, visit us at: http://www.shantichem.com.

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Both Alexs Smith & Alex Smith are contributors for EditorialToday. The above articles have been edited for relevancy and timeliness. All write-ups, reviews, tips and guides published by EditorialToday.com and its partners or affiliates are for informational purposes only. They should not be used for any legal or any other type of advice. We do not endorse any author, contributor, writer or article posted by our team.

Alexs Smith has sinced written about articles on various topics from Management. Shanti Chemical Works is a partnership firm with a commitment to manufacture and supply Best Quality Sodium Silicate and Potassium Silicate as per customers? specifications. The firm believes in Total Customer Satisfaction and works towards achieving it.. Alexs Smith's top article generates over 3600 views. to your Favourites.

Alex Smith has sinced written about articles on various topics from Management, Tanning and Computers and The Internet. Shanti Chemical Works is a partnership firm with a commitment to manufacture and supply Best Quality Sodium Silicate and Potassium Silicate as per customers’ specifications. The firm believes in Total Customer Satisfaction and works towards achieving it.. Alex Smith's top article generates over 1900 views. to your Favourites.

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