Chemical Exports Set To Cross USD 30 Bn In FY25: CHEMEXCIL

2025-02-07 04:11:26

(MENAFN- KNN India) New Delhi, Feb 7 (KNN) India's chemical industry is projected to achieve significant export growth in the current financial year, with shipments expected to surpass USD 30 billion, according to the Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL).

This forecast comes after a modest decline in the previous fiscal year.

Despite experiencing a 3.17 percent decrease to USD 29.3 billion in FY 2023-24, the sector has shown robust recovery, with exports reaching USD 21.2 billion in April-December of the current financial year, marking a 4.97 percent year-on-year increase, according to CHEMEXCIL Chairman Abhay Udeshi.

The industry's overall size is anticipated to expand substantially, growing from USD 220 billion in 2022 to USD 300 billion by 2025, with long-term projections indicating potential growth to USD 1 trillion by 2040.

This expansion is expected to be supported by recent budgetary measures announced by the government.

CHEMEXCIL's strategic focus on emerging markets and promotion of environmentally sustainable products, including green chemicals and bio-based specialty chemicals, aligns with global sustainability trends.

The council has identified these initiatives as key drivers for export growth in the coming years.

Recent budget proposals to reduce duties on critical raw materials, including phosphoric acid, boric acid, and sorbitol, have been well-received by the industry.

These duty reductions, combined with new measures to support MSMEs, are expected to strengthen both manufacturing capabilities and export performance.

The chemical sector maintains a significant position in India's economy, contributing approximately 7 percent to the country's GDP and representing 2.8 percent to 3 percent of the global chemical industry.

The sector's diverse portfolio encompasses more than 80,000 commercial products and provides employment to over 2 million people through direct and indirect opportunities.

(KNN Bureau)

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