Today, manufacturing is developing at a steady rate. We can understand how we are closely related to the Indian chemical industry. Whether it’s drugs, cleaners, synthetic clothing, or thermoplastic furniture, everything around us is a direct or indirect product of the chemical industry. The industry produces more than 70000 commercial chemical products a year, ranking sixth in the world’s largest chemical manufacturer and third in Asia. Although India’s chemical industry has many opportunities for development and progress internationally, there are also many difficulties hindering its development. Let’s take a look at the opportunities and challenges facing the Indian chemical industry today.
Challenges for Indian chemical manufacturers:
Shortage of raw materials
Raw materials or raw materials used in organic and inorganic chemical industries are not available in the market very soon. Compared with the Middle East, China and other Southeast Asian countries, India can obtain naphtha and natural gas and other major raw materials at a very high cost. The shortage of raw materials makes India uncompetitive in the world chemical market.
Comfort of imported goods
One of the outstanding challenges facing the Indian chemical industry is to acquire expertise in cheap chemicals through imports. The Indian government has exempted import taxes and other import barriers to several chemicals. This has led to an improvement in the import of chemicals of all kinds available in the global market at a much lower price.
Remote geographical location, backward infrastructure
India’s chemical industry has been established on the west coast of Gujarat, and the regions with the largest demand for chemicals are southern and eastern India. This leads to the rise of logistics transportation price, thus increasing the overall price of chemicals. In addition, the Ministry of enterprises has encountered various infrastructure difficulties. Inadequate port facilities, poor pipeline connectivity, inadequate power supply, and even a chaotic train station; it is challenging for the chemical industry to take into account the availability of raw materials from many Indian chemical manufacturers
Complex regulatory issues and high tax rates
The huge tariffs on many raw materials exceed those imposed on finished products.
This disappointed India’s chemical industry in manufacturing, with more chemicals and support for the import of similar chemicals due to the high cost of raw materials, as taxes were negligible
Indian chemical industry – Opportunities
Increase demand for value added products
Due to different environmental factors, the demand for value-added chemicals such as high-performance plastics and biodegradable polymers is expected to be maximized in the future. This will be a new opportunity for the Indian chemical industry to begin to involve the need for an increasing number of value-added chemicals. With more experiments on added value products, R & D can become a huge chemical business opportunity for Indian enterprises
Increase exports in developing markets
The booming countries in the Middle East, Africa and the Asia Pacific provide another prominent opportunity for India’s chemical industry. Compared with developed countries in Europe and North America, these countries have grown faster, which provides more export opportunities for India’s chemical industry, large and small. At present, China’s chemical export share in the international market is only 2%; the growing growth of these emerging markets will open up modern export opportunities for India
India has an excess supply of coal. Coal gasification is an excellent opportunity for Indian chemical industry to expand petrochemical and chemical production by using gasification technology. The demand for petrochemical products has developed. The coal gasification production of more and more chemicals and petrochemical products will be a huge opportunity to meet this expanding demand, which has been met by the expanded import.