No doubt in saying that the chemical industry in India is playing important role in economic growth of the country. This industry is a critical input for industrial and agriculture development and forms basic goods. It is one of the strongly established traditional sectors helping eternal role in country's growth.
There is a rapid growth seen in industrial and agricultural development of India, which has become possible due to the chemical industry. Even the Indian chemical industry is one of the oldest industries which have made the gigantic contribution to the industrial and agricultural development sector. It is included of both large and small-scale units. The financial incentives granted to the small-scale units in the mid-1980s provided the thrust to the growth of MSMEs in the sector. The chemical industry caters the different needs of several sectors that are textiles, leather, plastics, paper, printing inks and food stuffs, among others.
The great chemicals news India illustrate If we talk on a global scale, the Indian chemical sector has financial records for 13-14% of total exports and 8-9% of total imports of India. In terms of volumes of production, it is placed twelfth-largest in the world and the third-largest in Asia. Currently, the per capita consumption of products of the Indian chemical industry is one-tenth of the world average, which reflects the vast potential for additional growth. The Indian advantage lies in the manufacturing of basic chemicals that are also known as commodity chemicals that account for about 57% of the total domestic chemical sector.
Let's classify the chemical industry into two segments, one is organic and other is inorganic chemicals. Organic chemicals cover up over half of all known chemical compounds and include petrochemicals, drugs, cosmetics, agrochemicals, and many more. Inorganic chemicals comprise alkalis, dyes and dyestuffs. Based on the functionality of chemicals, they can be divided into basic, specialty and fine chemicals. We can get more information about these classifications through chemical industry portal.
Fortunately, the Indian chemical industry is gifted with availability of low cost labor. There can be great opportunities for this industry and the future is very bright because the associated industries such as leather, plastics, food processing, rubber, and textiles tender huge growth opportunities in the long term for the chemical industry. What's more, the government is also undertaking several initiatives to sustain the growth of this industry up to higher levels. The promotion of Special Export and Investment Zones, SEZs, cluster development and monetary incentives through fiscal and policy initiatives will promote the growth of the industry. Government has a priority focus on Infrastructure sector that is becoming very important for them. Thus, the increased expenditure on infrastructure will help in dropping the infrastructural bottlenecks in the long run. However, issues like inadequate technologies, skilled labor, environmental norms and need to innovate remained a threat to the industry.