This document summarizes information about the specialty chemicals industry in India. It discusses how specialty chemicals are important inputs for many other industries like automotive, aerospace, and textiles. The specialty chemicals sector in India is expected to grow significantly, reaching $40 billion by 2025, as global companies seek to diversify supply chains away from China. The government is taking steps to support growth in the industry through measures like production-linked incentive schemes, budget allocations, allowing 100% FDI, and developing infrastructure like Petroleum, Chemicals and Petrochemicals Investment Regions.
2. SPECIALITY CHEMICAL
■ Speciality chemicals are particular chemical products which provide a wide variety of effects on
which many other industry sectors rely.
■ Such industries that depend heavily on it are automotive, aerospace, food, cosmetics,
agriculture, manufacturing, and textiles.
■ Now speciality manufacturers can be divided into three main categories:
Tollers Custom Chemical Producer Proprietory Chemical producer
3. OPPORTUNITIES AND GROWTH
■ India’s specialty chemicals companies are expanding their capacities to cater to rising
demand from domestic and overseas.
■ With global companies seeking to de-risk their supply chains, which are dependent on
China, the chemical sector in India has the opportunity for a significant growth.
■ India's organic and inorganic chemicals augmenting export growth by 106%.
■ The growth of the Indian chemical industry is expected to double to reach USD 304
billion by 2025, clocking an annual growth rate of 15-20%.
■ The specialty chemicals sector is expected to reach USD 40 billion by 2025.
■ India's share in the global specialty chemicals market increased to 4% from 3%
between FY15 and FY21.
8. GOVERNMENT POLICY AND INVESTMENTS
■ The government plans to introduce production-linked incentive (PLI) scheme to
promote domestic manufacturing of agrochemicals.
■ Under the Union Budget 2022-23 the government allocated Rs. 209 crores (US$ 27.43
million) to the Department of Chemicals and Petrochemicals.
■ 100% FDI is permissible.
■ FDI inflows in the chemicals sector (other than fertilizers) reached US$ 19.09 billion
between April 2000 to December 2021.
■ In November 2021, Indian Oil Corporation (IOCL) announced plans to invest Rs. 3,681
crore (US$ 495.22 million) to set up India’s first mega-scale maleic anhydride unit for
manufacturing high-value specialty chemicals at its Panipat Refinery in Haryana.
9. FUTURE ORIENTED ACTIONS
1. Infrastructure Development
2. Reducing the time for new facilities
3. Tax Incentives
4. Petroleum,Chemicals and Petrochemicals Investment Regions (PCPIR)
Gujarat
Andhra Pradesh
Odisha
Tamilnadu
