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Chemical industry is a knowledge as well as capital intensive industry. This industry plays a significant role in the global economic and social development. The diversification within the chemical industry is huge and covers more than eighty thousand commercial products. Global chemical market size was estimated at USD 3.7 trillion in 2012 and is expected to grow at 4-5% per annum over the next decade to reach ~USD 5.8 trillion by 2021. As per Tata Strategic estimates, India currently accounts for only ~3 % of the global chemical market with a market size of USD 108 Bn in 2012. The major segments in Indian Chemical industry include base chemicals, specialty chemicals, pharmaceuticals, agrochemicals, biotechnology and petrochemicals.

Indian Chemical industry ranks 12th by volume in the world in chemical production. India is the fourth largest producer of agrochemicals in the world after USA, Japan and China. Also, Indian pharmaceutical industry is ranked 3rd in the world in terms of production volume.

Petrochemicals constitute ~40% of the global chemical market and the global market size was estimated at USD 1.48 trillion in 2012. Ethylene and Propylene constitute ~73% of global basic petrochemicals market. The Indian basic petrochemicals market includes end products market which includes polymers, synthetic fibers, elastomers and surfactants. The total petrochemical market has grown at a CAGR of 8.1% between 2006 -12 to reach USD 20.7 Bn in 2012.

Indian chemical industry constituted 5.3% of India’s total exports in FY12. Total exports of chemicals grew from USD 3.5 Bn in FY03 to USD 16.1 Bn in FY12 at a CAGR of 18.7%. India has also been a major importer of Chemicals. The sector made upto 5% of India’s total imports in FY12. Total imports for chemicals grew from USD 3.7 Bn in FY03 to USD 24 Bn in FY12 at a CAGR of 23%.


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