Chemical And Related
Chemical industry in India is the third largest producer in Asia and sixth largest in the world. Indian chemical industry is expected to double its share in global chemical industry to 5-6% by 2021 registering growth of 8-9% in the next decade. Number of MNCs is focusing on India for their manufacturing hub. Lower cost of labour, availability of key raw materials, large consumer markets and adaptability to technology are some of main attractions for having a strong manufacturing base in India.
With the high significance of chemical industry in Indian economy, following are the expectations from government to address the bottlenecks and growth:
Incentives for export units under make-in-India program: Indian chemical industry is a net importer with imports of USD 19bn compared to exports of 12.7 bn for FY15. Government needs to incentivise the Chemical units set-up with new technology catering to export market to give boost to the exports in turn reducing the current account deficit.