New Delhi: Indian chemical industry is likely to touch $190 billion by the financial year 2017-18 on account of increase in demand of the chemicals from industries of various sectors, a Tata group firm said in its report.
At the end of last fiscal, the domestic market size of industry is around $118 billion and it is approximately 3 per cent of the global chemical market, according to Tata Strategic Management Group's report titled 'Spurting the Growth of the Indian Chemical Industry'.
"It is highly diversified with more than 80,000 chemicals and currently accounts for 15 per cent of manufacturing GDP which makes it very crucial for the economic development of the country," the report added.
The report was released by Fertilizer Minister Ananth Kumar at the FICCI's 8th India Chem International Conference 2014. Announcing the findings of the 2014 report Tata Strategic Management Group Practice Head - Chemicals Manish Panchal said, "The Indian chemical industry is an integral component of the Indian economy and has the potential to grow to a size of $190 billion by FY 18 through a series of concerted efforts."
Panchal added that in order to realise the true potential, industry, government and regulatory bodies need to work in tandem. The report also underlines that current low per capita consumption across industries and segments and strong growth outlook for the key end use are the key growth drivers for this industry.
To meet the increasing demand either the local production will have to ramp up or it will be met by imports, it said. Net imports have grown at 20 per cent between FY'09 and FY'13 whereas in the same period the domestic output has grown by approximately 4 per cent.
However, going forward, new government's push through 'Make in India' campaign could become the next big manufacturing growth story, the report added.
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