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MUMBAI, 04 October 2018: Minister of Road Transport and Highways Development, Mr Nitin Gadkari today urged the Chemicals and Petrochemicals industry to look at ways to promote import substitution.
Inaugurating India Chem 2018, organised by the Federation of Indian Chambers of Commerce and Industry (FICCI) along with the Department of Chemicals & Petrochemicals, Government of India,Mr. Nitin Gadkari said, "Global investors in the chemical and petrochemical sector have a huge opportunity to invest in India. In the wake of rising crude oil prices, India needs to reduce its dependence on imports and increase exports. India is presently ahead in innovation, entrepreneurship, technology, research and development. There is a huge potential in the Indian petrochemical sector, but we need import substitutes, pollution-free, cost-effective and indigenous ways to go ahead".
He added that the Government had taken a decision to increase production of ethanol, which is important for the country. "As this is the time for India to find solutions for import substitutes, the chemical industry must work towards finding the solutions to curb imports of crude oil at rising prices," said Mr. Gadkari.
The Minister also announced that the government plans to start a pilot project in Mumbai, Navi Mumbai, Pune and Guwahati to run electric buses on Methanol derived from coal. He also emphasised to find a policy to encourage the industry to reduce imports and urged the Indian chemical industry to see, if agriculture material can be used to make chemicals, which will be a game changer for the country.
India Chem 2018, a three-day event, is India's largest event of chemicals & petrochemicals, which began today in Mumbai at Bombay Exhibition Centre, Goregaon.
The 10th biennial edition of India Chem saw a congregation of over 300 leading chemical and petrochemical companies from various countries across the globe. Some of the Leading companies from all over the world predominantly from Iran, China, Japan, United Kingdom, Spain, USA, Germany, Italy, Brazil, Turkey and South East Asian countries are participating as exhibitors, delegates and visitors.
Commenting on the opportunities in the sector, Mr P. Raghavendra Rao, Secretary, Department of Chemicals and Petrochemicals, Government of India, Chemicals and Fertilizers, Government of India said, "It is the right time to invest in Indian chemical and petrochemical industry due to vast opportunities that the sector offer. In the last seven years, production of total major chemicals and petrochemicals has grown 6.2% and is projected to grow by 9.3% by FY 2025. There are opportunities in sectors such as specialty chemicals, pharma, biotech."
Welcoming the gathering Mr Deepak Mehta, Chairman - FICCI Chemical industry Committee and Chairman and Managing Director of Deepak Nitrite Ltd., said, "As India gains increased traction from major countries, looking at investment in the Indian chemical sector, the government needs to put its combined vigour to grow the chemical industry multi-fold in coming decade". He further highlighted that with improved infrastructure, road connectivity, coal/piped energy and already being the 7th largest in size, India has achieved the eco-system as formidable player in the chemical market. He also emphasised on the opportunities for the Indian chemical companies to rapidly grow in size, especially with respect to China.
Mr Yousef Al-Benyan, Vice Chairman and CEO, SABIC said, "India and Saudi Arabia are the nations on the move. This Forum has given an opportunity to forge further relationships in the chemical and petrochemical industry. Saudi Arabia is India's fourth largest trading partner and trade investments are ever growing. Through SABIC, we are serving a wide spectrum of business in India. With our one of the largest investments anywhere in the world, we have set up our R&D centre in Bangalore, we are exploring to further ties with this remarkable and third largest sector of India".
Mr Nikhil Meswani Executive Director, Reliance Industries Ltd said, "Indian chemical and petrochemical industry is in an interesting phase, as India poses dynamic growth opportunities. The Indian petrochemical industry is soon set to register triple growth trajectory. Domestic competition with the global producers has to be on a level-playing field".
Globally, the chemical industry is estimated at US$4.7 trillion in 2017. The Indian chemical industry is estimated to be valued at $163 Bn in 2017 and contributes 3.4% to the global chemical industry. It ranks 14th in exports and 8th in imports of chemicals (excluding pharmaceutical products) globally. Net imports have grown at 5.8% between 2014 and 2018 in volume. The diversified chemical industry in India covers more than 80,000 commercial products.
FICCI MEDIA DIVISION
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Minister Mr. Nitin Gadkari urged the Chemicals and Petrochemicals Industry to look at ways to promote import substitution
India Chem 2018
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