1. India’s Chemical Industry at a Glance
* Current Size (2023): $220 billion
* 2030 Aspirations: $400450 billion
* 2040 Potential: $8501,000 billion
* GDP Contribution: ~7%
* Global Consumption Share (2023): 33.5%
* Target by 2030: 56%
2. Challenges Hindering Growth
* Heavy reliance on imports, $31B trade deficit
* High concentration on bulk chemicals (e.g., 95% propylene -> PP)
* Feedstock limitations and logistics inefficiencies
* Complex regulatory processes
* Skill shortage and limited R&D
3. Feedstock Conversion Comparison (India vs Global)
* Propylene to PP: India 95%, Global 70%
* Ethylene to PE: India 75%, Global 63%
* Benzene to BZ derivatives: India 87%, Global 25%
* Butadiene to PBR/SBR: India 84%, Global 54%
4. Government Interventions Proposed
* Establish chemical hubs with shared infrastructure
* Develop port infrastructure and logistics clusters
* Introduce opex subsidies for critical chemicals
* Foster R&D and global tech partnerships
* Streamline environmental clearances
* Secure FTAs with chemical-specific provisions
* Expand ITIs and vocational chemical training
5. Projected Impacts by 2030
* 700K1M jobs created
* $3540B additional exports
* Net-zero trade deficit
* 56% global production share
6. Lessons from Chinas Chemicals Growth
* 6% -> 33% global share (20002022)
* State-driven overinvestment, tech imports, JV with MNCs
* Supportive R&D, cluster development, free trade zones
* Capex: $370B by 2023
7. Indias Roadmap: 4 Strategic Pillars
1. Tap into Export Markets (e.g., paints, polyester fiber)
2. Grow Sunrise Segments (e.g., battery & electronic chemicals)
3. Solve for Production Competitiveness (e.g., EVA, phenol)
4. Unlock Technology Access (e.g., MDI/TDI, acetic acid)
Source
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