Indian chemical industry: A growing force and its prospects
Indian chemicals sector set for rapid growth, with specialty chemicals expected to be the most lucrative segment. India attracts investment as companies diversify away from China. Chemical industry revenue has been growing at an average rate of 15% in the last 5 years.
The Indian chemicals sector stands out as one of the most rapidly advancing industries globally. It has attained the status of being the sixth-largest chemical producer, with a market size of $178 billion in 2021. As per industry reports, this sector is poised for further expansion, with an anticipated CAGR of 11–12%, reaching a value of $290-310 billion by 2027. When categorizing the chemical sector by its function and usage, it is typically classified into four distinct segments: (a) Pharmaceuticals, (b) Agrochemicals (c) Industrial Chemicals: including substances such as solvents, lubricants, and catalysts, (d) Specialty Chemicals: which include unique offerings like specialty polymers, coatings, and electronic chemicals. Among these segments, the Specialty Chemicals category is expected to exhibit the most accelerated growth, with projections indicating a value of approximately $50 billion by 2025.
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