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India Chemical Industry 2H12

  • March 2013
  • -
  • Emerging Markets Direct Media Holdings
  • -
  • 33 pages

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India: Chemical covers the sector overview, sector size, competitive landscape and enviromental scanning for India. It also covers the market trends and outlook, key economic indicators, production trends in terms of installed capacity and utilisation rates, chemical exports, chemical imports, price trends and industry forecast, plus the profile, comparative matrix and SWOT analysis of the industry leading players: Tata Chemicals Limited, United Phosphorus Limited, and Pidilite Industries Limited.

The Indian chemical industry has played an important role in the development of Indian economy. The industry includes basic chemicals and chemical products, petrochemicals, agrochemicals, dyes, paints and varnishes, synthetic fibres and industrial gases. Chemicals and chemical products is the second largest industry in the manufacturing sector after basic metals. The Indian government sees the chemical industry as integral to the Indian economy and came out with a Draft National Chemical Policy in March 2012, which intends to transform India into a major manufacturing hub of chemicals.

Despite uncertain conditions in global economy and slowdown in industrial production, the chemical industry performed better than its historic average in the first nine months of FY13. The sector also outperformed the overall manufacturing sector in terms of production during the second half of the year. Chemical exports were resilient and registered export growth in all the major segments. However, chemical imports have been leading chemical exports for many years, resulting in a net trade deficit in the sector. With growing concerns of widening overall trade deficit, the Indian government is embarking on plans to increase the country’s chemical exports.

The long term outlook for Indian chemical sector is stable because of a growing construction sector, a large textile sector, and a growing need for agrochemicals. The introduction of National Chemical Policy and other such government incentives will further add to the growth of this sector.

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