India’s chemicals market to hit USD 29.7 billion in 2024

New Delhi: India’s chemicals market, currently valued at USD 220 billion in 2023, is forecasted to soar to USD 383 billion by 2030. This growth is underpinned by an 8.1 per cent anticipated CAGR from 2021 to 2030.

As the sixth largest globally by chemical sales, India has attracted significant foreign direct investment (FDI), with cumulative FDI inflows reaching USD 21.7 billion from April 2000 to September 2023.

The sector benefits from 100 per cent FDI under the automatic route, bolstering investor confidence and facilitating growth. India’s Petroleum, Chemical, and Petrochemical Investment Regions (PCPIRs) are expected to attract investments worth USD 420 billion, reflecting the sector’s robust potential.

Additionally, the establishment of seven Central Institutes of Petrochemicals Engineering & Technology (CIPET) and the Institute of Pesticide Formulation Technology (IPFT) will drive skill development, ensuring a skilled workforce to support the industry’s growth.

The chemicals sector contributes 12 per cent to India’s total exports, highlighting its significance in the global market.

Speciality chemicals, in particular, are projected to grow at a CAGR of 12 per cent from 2020 to 2025, driven by innovations and increasing demand across various applications.

According to recent projections, the value added in the chemicals market is expected to reach USD 29.7 billion in 2024, with a compound annual growth rate (CAGR) of 3.26 per cent from 2024 to 2029.

The chemicals market in India is set to witness substantial growth across various metrics. In 2024, the value added per capita in this market is projected to be USD 20.6, with a value added margin of 21 per cent.

The overall market output is anticipated to be USD 143.3 billion, growing at a CAGR of 2.71 per cent over the next five years. Additionally, the output per enterprise is projected at USD 9.1 million.

The chemicals sector is not only expanding in terms of market value but also in enterprise and employment numbers. By 2024, the number of enterprises operating in this market is expected to reach 15,730, with CAGR of 4.70 per cent from 2024 to 2029. This growth will translate into a higher enterprise density of 11 enterprises per 100,000 populations.

Employment in the chemicals sector is projected to reach 1 million by 2024, supported by a CAGR of 3.19 per cent over the forecast period.

The employment rate within the sector is projected to be 0.07 per cent, with labor efficiency and productivity expected to be USD 143,000 and USD 29,700, respectively.

Several factors are driving the demand in India’s chemicals market. Growing domestic consumption, coupled with the demand from end-use industries such as packaging and automotive, is propelling market growth.

Favorable government policies, improving infrastructure, and the availability of skilled labor at competitive costs further enhance the sector’s attractiveness. Multinational firms are diversifying their sourcing countries, with India emerging as a key player due to its competitive advantages. (ANI)

Also Read: ‘Chemical sector in India needs to be more self-reliant, cost-effective’ (sentinelassam.com)

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