Specialty Chemicals Segment To Help Industry Touch $1 Trillion Mark By 2040
(MENAFN- KNN India)
Specialty chemicals segment to help industry touch $1 trillion mark by 2040 Mumbai, Mar 2 (KNN) India's chemical industry currently valued at around USD 220 billion is on the path to touch the USD 1 trillion mark by 2040, said Arun Baroka, Secretary, Chemicals & Petrochemicals, Ministry of Chemicals & Fertilizers at the Indian Chemical Council's conference in Mumbai on Wednesday.
“It is predicted that demand for speciality chemical segment is expected to grow at a pace of over 15 per cent CAGR. With 100 per cent FDI allowed through the automatic route and tremendous headroom for growth,” Baroka added.
McKinsey in a white paper released at the conference pointed out domestic consumption in India will grow at 9-10 per cent CAGR in the next few years due to the rising disposable income, a favourable demographic dividend, increasing global preference for bio-friendly alternatives and growing diversification of global supply chains.
'With this growth, India's share in the global chemicals sector could triple to 10-12 per cent by 2040, creating an additional USD 700 billion market value,' it said.
McKinsey further added that the specialty chemicals segment is likely to be a key driver of this growth as it has the potential to contribute more than USD 20 billion to India's net exports by 2040, a ten times jump from the current total of USD 2 billion.
Currently, the Indian chemical and petrochemical sector employs more than two million people and contributes to 9 per cent of India's manufacturing gross value added. The industry contributes to 13 per cent of India's total export value.
Srikar Reddy I.F.S., Joint Secretary Commerce said, that the recent Comprehensive Economic Partnership Agreement (CEPA) between the Government of the Republic of India and the Government of the United Arab Emirates will boost the Indian Chemical Trade.
'The CEPA is expected to increase the bilateral trade in goods to USD 100 billion within five years of the signing and increase trade in services to USD 15 billion,' he said.
(KNN Bureau)
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