The chemical industry is one of the oldest domestic industries in India, contributing significantly to both the industrial and economic growth of the country since it achieved independence in 1947. The chemical industry currently produces nearly 70,000 commercial products, ranging from cosmetics and toiletries, to plastics and pesticides.
The wide and diverse spectrum of products can be broken down into a number of categories, including inorganic and organic (commodity) chemicals, drugs and pharmaceuticals, plastics and petrochemicals, dyes and pigments, fine and specialty chemicals, pesticides and agrochemicals, and fertilizers.
The Indian pesticide industry has advanced significantly in recent years, producing more than 1,000 tons of pesticides annually. India is the 13th largest exporter of pesticides and disinfectants in the world, and in terms of volume, is the 12th largest producer of chemicals. The Indian agrochemical, petrochemical, and pharmaceutical industries are some of the fastest growing sectors in the economy. With an estimated worth of $28 billion, it accounts for 12.5 percent of the country's total industrial production and 16.2 percent of the total exports from the Indian manufacturing sector.
With a special focus on modernization, the Indian government takes an active role in promoting and advancing the domestic chemical industry. The Department of Chemicals & Petro-Chemicals, which has been part of the Ministry of Chemicals and Fertilizers since 1991, is responsible for policy, planning, development, and regulation of the industry. In the private sector, numerous organizations, including the Indian Chemical Manufacturers Association, the Chemicals and Petrochemicals Manufacturers Association, and the Pesticides Manufacturers and Formulators Association of India, all work to promote the growth of the industry and the export of Indian chemicals. The Indian Chemical Manufacturers Association, for example, represents a large number of Indian companies that produce and export a number of chemicals that have legitimate commercial applications, but also can be used as precursors and intermediates for chemical weapons production.
Very broadly, chemicals can be classified into polymerisation products, basic chemicals, fine chemicals and pharmaceuticals. Polymerisation products include items of everyday use such as polyethylene sheets, plastic articles, PET containers, etc. Basic chemicals are those that go into production of consumer items like paints dyes, soaps, medicines, toiletries, cosmetics, etc. Besides, there are fine and speciality chemicals which have very specific uses and are essential for increasing industrial production. Pharmaceuticals cover the whole range of medicines and life-saving drugs.
Based on the turnover, the broad structure of the Indian chemical industry is as follows: Today, it accounts for 14% of the total output of the Indian manufacturing sector, its exports being US $3.5 billion, which represents 10.7% of the country's exports. A substantial proportion of these exports goes to the USA, Europe and other developed nations, an indication that the high quality of Indian products can compete with the best in the world.
As far as basic chemicals are concerned, India produces a large number of both organic and inorganic chemicals. In dyes and fine chemicals, the Indian industry combines traditional knowledge and skills to produce high quality products. This sector of the Indian chemical industry has done exceedingly well and, with an export of US $500 million, India is the 9th largest exporter of dyes and dyestuffs.
Petrochemicals are derived from the major petroleum feedstocks namely, Naphtha, Gas and Kerosene. These are converted into plastics, synthetic fibres, synthetic rubbers, detergent intermediates and chemicals. The major application areas of plastics are in packaging, pipes, canal lining, furniture, footwear etc., supplementing conventional material such as paper, wood, steel, cement, glass, jute, leather etc. Synthetic fibres, used for making industrial fabrics, etc., supplement natural fibres like cotton, wool, silk, etc. Synthetic rubber is used in tyres, tubes, footwear and other rubber products and supplements natural rubber in these areas.
Currently, there are 7 cracker complexes in operation including the one at Haldia in West Bengal. Besides, there are 3 aromatic complexes.
The petrochemical sector has been growing @ 14-15% annually, the growth rate being twice the growth rate of the GDP. Despite rapid growth in the consumption of petrochemicals in the country, Indian per capita consumption at 3 kgs.has to go a long way before it catches up with the world average of 17 kgs. Similarly, the per capita consumption of synthetic fibre of 1.6 kg is significantly low vis-à-vis the world average of 3.9 kg.
In agrochemical, we manufacture significant quantities of synthetic pyrethroids, such as fenvalerate and cypermethrin, endosulphane, and organophosphate range of agrochemicals, including monocrotophos. India is also a dominant producer of is oproturon, a weedicide accounting for nearly 25% of the world-wide production.
Plastics is of core importance as they represent a safer and more energy efficient alternative.
There are about 50 units in the organised sector and about 900 units in the small scale sector.
The Installed Capacity:
37,000 MTA Organised Sector
10,000 MTA Small Scale Sector
Nearly 80% of the dyes manufactured is utilised by the textile industry, with the balance going to into paints, printing inks, rubber & leather.
The Indian fertilizer industry has emerged as the fourth largest producer of fertilizers in the world after China, USA, Russia. Nitrogenous and phosphatic fertilizers are produced indigenously, while requests for potassic fertilizers are met through imports.
India has achieved near self-sufficiency in the inputs for the production of nitrogenous fertilizers, but for the production of phosphatic fertilizers, the country continues to rely on imports of raw materials (rock phosphate and sulphur and for intermediates such as phosphoric acid).
Trade in chemicals to and from India in the recent years has increased substantially.
Exports are targeted for growth of over 400% by the year 2000. A large chunk of the current exports is accounted for by pharmaceuticals (35%).
Though earlier the exports were to countries of South East Asia, Africa, this is now changing. Indian Chemicals have markets in countries such as USA, UK, Germany, France, Japan, etc.
- (Department of Chemicals & Petrochemicals, Ministry Of Chemicals & Fertilisers, Govt of India)