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The size of Indian Chemical industry
is about Rs.120,000 crore. The production of Chemical industry
during the financial year 2000-2001 witnessed growth of
7.6% compared to 1999-2000. This was higher than the overall
manufacturing sector growth of 5.2%.
Chemical industry is one of the major
contributors to India’s GDP and has 14% share in Indian
manufacturing output. It contributes around 8% of exports
from India, and accounts for 11% of import bill. This amply
indicates the important place and role of the Chemical industry
in India’s industrial as well as overall economic development
and growth.
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The Chemical industry is going through a slow but
definitive restructuring. With gradual reduction in import tariffs,
competitiveness of operations has assumed primary focus. There
will be improvement in scale of operations with upgradation of
technology. The industry will go through a phase of consolidation,
which could initially be a painful process, but there is no doubt
that the industry will emerge stronger to face global competition.
With the expected acceleration in economic reforms
and higher GDP growth, prospects for the chemical industry are
bright.
