Indian chemicals sector is seeking major opportunities in export markets due to emerging possibilities in US-China Trade war and Brexit and grow at around 9 percent per annum to reach $304 billion by FY25.
The USA, EU and UK markets are ripe for disruption this year as China has been the single largest supplier to USA and post import duty tariff regime, Indian companies needs to look at US business with alacrity, Basic Chemicals Cosmetics and Dyes Export Promotion Council (Chemexcil) chairman Ajay Kadakia said in a statement here.
With nearly $15 billion Chinese exports in chemicals and plastics subject to US tariffs, India is set to gain market share in US market, he added.
"Chinese buyers are also seeking product sourcing from India due to their own environment related problems and our chemicals and plastics export have seen a consistent growth from India," Kedia said.
Brexit also offers a huge opportunity for chemicals and plastics as well.
"UK's chemical and drugs exports are about $60 billion and 60 percent of the same is consumed by EU. About 75 percent of UK's chemical imports come from EU and Indian exporters would do well in both these markets too," he added.
Globally, chemical industry is estimated at $4.7 trillion in 2017. It is expected that the country's chemical industry will grow at around 9 percent per annum to reach $304 billion by FY25, from USD 163 billion in FY18.
The growth is likely to be driven by rising demand in end-use segments for speciality chemicals and petrochemicals.
Plastics Export Promotion Council chairman Ravish Kamath said India's plastic exports, which are likely to cross $11 billion this year the highest ever would benefit from the US-China Trade war and Brexit.
For instance, post-Brexit, UK's plastics imports which are valued at $18 billion per annum and 70 per cent of which is coming from the EU, would be open to more countries, like India in the future, he added.
Keeping in view the emerging global export opportunities, leading Indian councils are jointly organising 4th edition of 'CAPINDIA' in Mumbai between March 26 and 28.
This story has been published from a wire agency feed without modifications to the text. Only the headline has been changed.