Indian chemicals industry is expected to reach 304 billion dollars by 2025, said Shri D. V Sadananda Gowda

Shri Gowda was speaking at a National Dialogue on Manufacturing Excellence and Innovation for Competitiveness and Sustainability of Chemicals Manufacturing organized by the Facility for International Cooperation for Inclusive & Sustainable Industrial Development in New Delhi.

6 April 2021, New Delhi: Union Minister for Chemicals and Fertilisers Shri D.V. Sadananda Gowda virtually addressed a National Dialogue on Manufacturing Excellence and Innovation for Competitiveness and Sustainability of Chemicals Manufacturing in New Delhi today.

Speaking on the occasion, Shri Gowda said that the Chemicals and Petrochemicals sector will play an important role in achieving the goal of 5 trillion-dollar economy. The Minister informed that the Indian chemicals industry stood at 178 billion dollars in 2019, and is expected to reach 304 billion dollars by 2025, and that the demand for chemicals is expected to expand by 9 percent per annum by 2025. Achieving the industry’s ambitious growth targets will require a combination of policy intervention, company-level initiatives, industry-academic partnerships, wise investments, and greater international access, he added.

The chemical sector, which is knowledge and capital intensive, is the mainstay of industrial and agricultural development, and provides building blocks for downstream industries such as textiles, papers, paints, soaps, detergents, and pharmaceuticals, among others. The fertilizer and agrochemical industries ensure food security, and are thus vital to India’s developing and agrarian economy. Likewise, the synthetic fiber industry is crucial to providing affordable clothing, and the pharmaceutical industry gives the country’s vast population access to low-cost drugs.

Talking about the pandemic and its effects on the industry, Shri Gowda further said that today, our domestic industry and investors are feeling much more confident and optimistic in spite of an uncertain global situation and pandemic like COVID-19. He urged that Indian companies and chemical industries should take advantage of this opportunity and bring about structural changes in the chemical industry. The Minister expressed his confidence in Indian scientists, policy makers, farmers, MSMEs and entrepreneurs and industry leaders for making India the manufacturing hub, ensuring that the country manufactures products which are ‘Made in India’ but are ‘Made for the World’.

The Minister also thanked UNIDO for taking the initiative for raising dialogue on transforming the chemical industry sector of India into a more efficient, effective and competitive ‘growth engine’.

Elaborating on the current situation and what was needed going forward, Dr. René Van Berkel, UNIDO Representative, Regional Office India said, “Chemicals is a powerhouse of Indian manufacturing. However, there is still continued reliance on ‘traditional’ process chemistries which involve more hazardous substances, require more energy, materials and water, and produce more waste and effluents. To achieve inclusive and sustainable chemicals manufacturing, we need a two- pronged strategy - first, we need to achieve ‘manufacturing excellence’ by cleaning out factories to zero out avoidable losses, which will lead to greater profitability and well-being of workers, community and the environment; and by making factories more efficient, effective and mature. Second, we need ‘innovation’ through learning, adapting or redefining.”

Secretary, Chemicals & Petrochemicals, Shri Yogendra Tripathi; Additional Secretary (Chemicals), Shri Samir Kumar Biswas; Director General, Indian Chemical Council, Shri H. S. Karangle; CMD, HIL India Ltd, Dr. S.P. Mohanty; Regional Representative of UNIDO in India, Dr. Rene Van Berkel and senior officials of the Ministry were also present at the event.

For more, please watch the recorded event here: