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)

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