India Chemical expects the Indian chemical industry to grow 11-12% annually in 2021-27 and 7-10% in 2027-40%, doubling its global market share by 2040%. According to a report by the Indian Chemical Council, (ICC) McKinsey at the conference held recently in Mumbai, growth is expected to be driven by multiple factors including domestic consumption, consumer preferences and changes in the supply chain.

India is expected to account for more than 20% of the growth in global chemicals consumption over the next 20 years, with domestic demand projected to increase from $170 billion in 2021, according to the report, titled India: the next chemicals manufacturing hub. 2021 to $170 billion. It is also expected to increase. By 2040 This figure will start at 18000 From $850 billion to $850,000 1 billion to $1 trillion.

The report also said that the growing global demand for environmentally friendly products will benefit India as it is a major producer of many of the chemicals used in these products. He added that the company is working to increase the flexibility of its supply chain.

Regarding the widening trade deficit, the report predicts that the current trade deficit in India's chemical industry is expected to widen to $9 billion to $10 billion by 2040, with exports projected to grow at an average annual rate of 9.5 to 10 percent. percent, and revenues are expected to grow at a 9-9.5 percent CAGR to $1.8-185 billion.

The industry's three major segments-33,354 Miscellaneous Inorganics, Petrochemicals (Petchem), and 33,354 Specialty Chemicals-are expected to be net exporters only for specialty chemicals. Net exports are projected to grow nearly tenfold to $21 billion by 2040 2021, up from approximately $2 billion in the year beginning 2021. The petrochemical and arms industries will suffer trade deficits due to limited cracker infrastructure and shortages of key raw materials and minerals. The petrochemical industry deficit of $41 billion is almost double the inorganic products deficit of $21 billion.

Petrochemical imports can be spread across a wide range of products, with the largest imports of PVC and polypropylene accounting for only 13% and 8% of imports, respectively. Meanwhile, the sector's exports are dominated by C8 (xylene) and C6 (benzene) structural units, as well as the principal polymers PP, LLDPE and HDPE. In the arms sector, imports are dominated by phosphorus, potassium and titanium (70% of total imports) and exports are dominated by carbon black, sodium and titanium (65% of total exports).

According to the report, the specialty sectors that generate net trade surpluses are the strongest pillars of the Indian chemical industry. In general, 16 specialty chemicals segments are performing well in terms of cost competitiveness and market attractiveness. Two of these segments are:

Agrochemicals. The Indian pesticides market currently stands at $55.51 billion, growing at a CAGR of 8.3%. It is expected to account for around 40% of India's total chemical exports by 2040.

Food and Feed Ingredient Chemicals. This segment includes flavors, food and feed additives, and functional foods, and is a $30 food dollar market in India with a compound annual growth rate (CAGR) of 7% to 9%.

Demand in the specialty chemicals segment is expected to grow at a CAGR of more than 15%. By 2040, the specialty and petrochemical sector will contribute $49-56,000 million or about 57.6-56% to the Indian chemical market.

Benchmarking the competitiveness of the Indian chemical manufacturing industry, the report says that while the Indian chemical market significantly shows strong growth in the chemical industry, the competitiveness of the manufacturing industry is not evident. Through 24 industry benchmarking across six global chemical clusters (China, Germany, Indonesia, Saudi Arabia, South Korea, and Vietnam), we find that India has a competitive advantage in most areas, but underperforms in others. Competitive Advantage. The next sector: the growing global demand for green products could benefit India as it is one of the leading producers of many chemicals used in green products. India has the potential to become a consumption and manufacturing engine for the global chemical industry, but many challenges remain, including limited availability of raw materials, delays in regulatory approvals and lack of skilled R&D talent.

The future of the Indian chemical industry is promising. If Indian chemical companies focus on the right type of business, the right mode of entry and global market reach, the country can become a driver of supply and demand in the global chemical market. Leverage asset perspectives, existing supply chains, etc., wherever possible.