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Indian chemical and Petrochemical industry can contribute $300 Billion to the GDP by 2025: DV Sadananda Gowda

Sep 29, 2020

To become a global hub for specialty chemicals we need to focus on R&D



NEW DELHI, 29 September 2020: Mr DV Sadananda Gowda, Cabinet Minister, Ministry of Chemicals and Fertilizers, GoI, today said that going by the Prime Minister's vision for focussed effort to make India a $5 trillion economy, the Indian chemical industry has a huge role to play with a potential to contribute $300 billion to the GDP by the year 2025.


Addressing the Inaugural Session and Launch of India Chem 2021 'at Specialty Chem 2020', the Minister said that to become a global hub in speciality chemicals, we must focus on the Research and Development. "There is a need to make the R&D ecosystem stronger to come up with enhanced products aligned with the changing requirement of the industries," he added.


Speaking on foreign investment in the chemical industry he said that the ministry has set up an investment promotion cell in the department for providing one-stop handholding and support for companies willing to invest in India.


"We have had several rounds of discussions on how to make the PCPIR more effective and we hope to come up with policies to make the industrial clusters more attractive for investment," said Mr Gowda. He further mentioned that India is finalizing plans to increase the number of chemicals to be covered by mandatory certification for the benefit of human lives and society.


Mr Gowda urged the global chemical and petrochemical industry to join the India Chem 2021 to experience a plethora of opportunities available in India. "I welcome all the players in the sector to utilise the potential of India as a growing base for speciality chemical industry, he said.


Mr Rajesh Kumar Chaturvedi, Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals and Fertilizers, Govt. of India, said, COVID-19 pandemic has given ample opportunities to the chemical and petrochemical sector to grow by realigning the business models as demand for items like sanitizers, PPE, masks have increased manifold. The vision of PM for Atmanirbhar Bharat and the right steps in this direction can help the industry record a massive growth and reduce import dependence on any nation. We are taking major initiatives to promote Atmanirbharta in the chemical and petrochemical sector as its development will have a positive effect on allied industries, he said.


Mr Chaturvedi also mentioned about the 11th edition of Indian Chemicals & Petrochemicals Industry's largest event, i.e. India Chem 2021, which would be organized from 17th to 19th March 2021 with the apt theme - "India Chem 2021 - Towards a Self-reliant  Chemicals and Petrochemicals industry". The event, he said,  will be jointly organized by Department of Chemicals and Petrochemicals, Government of India and FICCI. The flagship event will give an opportunity for the global chemicals and petrochemicals industry to better understand the opportunities that exist in the Indian market, he said.


Speaking on Odisha as the ideal investment destination in India, Mr Hemant Sharma, IAS, Principal Secretary, Department of Industries, Govt. of Odisha, said that Odisha provides an attractive destination for Chemical with excellent port connectivity which helps the industry to serve the South East Asian market efficiently.


He further mentioned that the cost of skilled labour in Odisha is one of the best and most industrial areas in India runs with skilled, productive, and disciplined workers hailing from Odisha. "We have the lowest tariff in industrial electricity in India, low cost of water and human resource. Infrastructure and cost of doing business are what makes Odisha a competitive destination, Mr Sharma said.


Mr Deepak C Mehta, Chairman, Chemical Committee of FICCI, Chairman & Managing Director, Deepak Nitrite Limited said that the chemical industry is going through a positive transformation and the desire to be Atmanirbhar has brought a new dimension to the chemical industry.


Mr Koushik Bhattacharyya, Director, Avendus Capital Pvt. Ltd., said, "The Indian speciality chemical industry has been a shining star in India amid all the challenges posed by the pandemic. He said that building leadership positions in molecules and chemistry and India's dominance in Chemical CRAMS (Contract Research and Manufacturing Services) are the two successful business models in the chemical industry.


Mr Alan Gemmell, Her Majesty's Trade Commissioner for South Asia and British Deputy High Commissioner for Western India said that the chemical industry, especially speciality chemicals, plays a vital role in meeting the key challenges of today and the future. "The Chemicals and Pharmaceuticals industry is UK's 2nd largest manufacturing industry and there is a potential to strengthen the trade relationship between India and UK through speciality and organic chemicals," he said.


Mr Rajendra Gogri, Chairman & Managing Director, Aarti Industries, said that India's per capital chemical consumption is very low but increased urbanization will lead to a significant increase in domestic consumption of speciality chemicals in the next 10 years. He further mentioned that with the disruptive global supply chain, India is the best and the only available choice for global partners.  


Mr Rajesh Kumar Srivastava, Co-Chairman - Chemical Committee of FICCI and CEO, Jubilant Life Sciences Limited delivered the vote of thanks.


FICCI-Avendus Report 'Indian Specialty Chemicals Industry - Biggest Beneficiary of the Global Paradigm Shift' was also released during the webinar.

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