• 14th Pravasi Bharatiya Divas, Bengaluru
  • 14th Pravasi Bharatiya Divas, Bengaluru
  • A Coffee Table publication titled, "20 Mission Drive Social Impact Innovations" produced by Economic Diplomacy Division was released by the Hon'ble Prime Minister
  • Hon'ble Prime Minister Sh. Narendra Modi felicitating the 20 innovators selected through the MEA-NITI Aayog National Social Innovation Contest.
  • Global Technology Summit 2016 Click here for details
  • Global Technology Summit 2016 Click here for details
  • Ministry of External Affairs organises India-Latin Americas and the Caribbean (LAC) Conclave in Guadalajara, Mexico to enhance economic cooperation between India and LAC countries.
  • Ministry of External Affairs organises India-Latin Americas and the Caribbean (LAC) Conclave in Guadalajara, Mexico to enhance economic cooperation between India and LAC countries.
  • Global Technology Summit 2016 Click here for details
  • National Contest on Social Innovation, Pravasi Bhartiya Divas 2017
  • The Framework Agreement of the International Solar Alliance was opened for signing on 15 November 2016. On the first day of its opening 16 countries have signed the framework agreement. More countries are expected to sign the framework agreement in the coming days.
  • MEA - ED and BM Divisions along with Cll organized the India- Myanmar Business Roundtable on 19 October 2016 in New Delhi
  • ED Division continues MEAs engagement with Africa by sponsoring the India Africa Health Sciences Meet in New Delhi
  • 18 member multi-sector delegation from Nanjing, China interacting with Shri Nagaraj Naidu, Director & HOD, ED on 16 August 2016
  • Hon'ble Minister for External Affairs chaired Pravasi Bhartiya Diwas Panel-6 on "Edu, S&T & Innovation" on 30 July 2016. The Panel discussed tech solutions for societal problems, edu for tomorrow and Start Ups.
  • Hon'ble Prime Minister inaugurated investment guides for Indian investors who wants to do business with Kenya and Mozambique during his recent tri-nation visit to Africa. The publication was brought by ED Division with support from Indian Missions in Kenya and Mozambique.
  • Indian dignitaries at the inauguration of India pavilion at INNOPROM exhibition in Yekaterinburg Russia
  • ED Division facilitated visit of a Chinese delegation led by Mr Wang Hao, Mayor of Chaoyang district of Beijing Municipality and arranged meetings with officials of Municipal Corporation of Gurgaon and FICCI on 21 June 2016. (Press Release)
  • ED Division facilitates meeting of CEO of the British Columbia Investment Management Corporation Mr Gordon Fyfe and Team with Hon'ble Transport Minister Shri Nitin Gadkari and CEO NITI Aayog Shri Amitabh Kant on 16 June 2016
  • ED Division facilitates meeting of CEO of the British Columbia Investment Management Corporation Mr Gordon Fyfe and Team with Hon'ble Minister of Finance, Shri Arun Jaitley and CEO NITI Aayog Shri Amitabh Kant on 16 June 2016
  • Inter-Ministerial Meeting on Pharmaceuticals and Healthcare Sector in Africa
  • BRICS India 2016
  • Smt. Harsimrat Kaur Badal, Minister of Food Processing & Industry briefing representatives of foreign Embassies on opportunities in food processing sector in India in a meeting facilitated by ED Division on 17 March 2016 at Panchsheel Bhawan, New Delhi.
  • Investment
  • India at a glance
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Industry & Sectors

Chemicals

The chemical industry, which includes basic chemicals and its products, petrochemicals, fertilizers, paints & varnishes, gases, soaps, perfumes & toiletries and pharmaceuticals is one of the most diversified of all industrial sectors covering thousands of commercial products. It plays an important role in the overall development of the Indian economy. It contributes about 3 per cent in the GDP of the country.

Chemical industry is one of the oldest industries in India. It not only plays a crucial role in meeting the daily needs of the common man, but., which are required in almost all walks of life. Over the last decade, the Indian Chemical industry has evolved from being a basic chemical producer to becoming an innovative industry. With investments in R&D, the industry is registering significant growth in the knowledge sector comprising of specialty chemicals, fine chemicals and pharmaceuticals.Indian chemical industry is expected to grow to US$100 billion by 2015.

Overview of the Chemical Industry

The chemical and petrochemical sector in India presently constitutes 14 per cent of the industrial domestic activity. It should also be noted that investments in this sector are highly capital intensive with long gestation periods. The growth of petrochemicals and chemicals is projected at 12.6 per cent and 8 per cent respectively in the 11th five year plan (2007-2012). According to the United Nations Industrial Development Organization (UNIDO), in terms of value added at constant 2000 prices, the Indian chemical Industry is 6 th in the world and 3rd in Asia .

Production trends

Production of Selected Major Chemicals

 

Sector Production (in ?000 Metric Tonne) Growth (%) 
  2007-08 2008-09 2009-10 2010-11 
up to Sept.
2009-10/ 2008- 09 CARG 
2009-10/05-06
Alkali Chemicals 5443 5442 5602 2890 2.9 0.6
Inorganic chemicals 609 512 518 281 -12.6 -1.2
Organic Chemicals 1552 1254 1280 649 -19.2 -4.6
Pesticides (Tech.) 83 85 82 44 -3.5 0.0
Dyes & Dyestuffs 44 32 42 24 31.2 8.8
Total Major Chemicals 7731 7325 7524 3888 2.70 -0.5

 

Production of Selected Major Petrochemicals

Sub-Group Production (in ?000 Metric Tonne) Annual Growth 
  2007-08 2008-09 2009-10 2010-11 
up to Sept.
2009-10/ 2008- 09 CARG 
2009-10/05-06
Synthetic Fibers 2524 2343 2601 1362 11.01 8.08
Polymers 5304 5060 4791 2486 -5.32 0.12
Elastomers (S. Rubber) 106 96 106 51 10.42 -0.92
Synthetic Detergent Intermediates 585 552 618 302 11.96 2.68
Performance Plastics 157 141 172 78 21.99 7.88
Total Major Petrochemicals 8676 8192 8288 4279 1.15 2.64

Source:Annual Report 2010-11,Ministry of Chemicals and Fertilizers,Government of India

Dyestuff sector

The Dyestuff sector is one of the important segments of the chemicals industry in India, having forward and backward linkages with a variety of sectors like textiles, leather, paper, plastics, printing inks and foodstuffs. The textile industry accounts for the largest consumption of dyestuffs. From being importers and distributors in the 1950's, it has now emerged as a very strong industry and a major foreign exchange earner. India has emerged as a global supplier of dyestuffs and dye intermediates, particularly for reactives, acid, vat and direct dyes. India accounts for 7 per cent of the world production.

Concessions to Chemical Companies
Some chemical companies had demanded concessions during the recession period. These included reduction in Central Excise Duty from 14 per cent - 8 per cent, roll back of Import duty of 5 per cent on Naptha, levy of crisis duty (10 per cent) on all chemicals, intermediates, dyes, pigments and pesticides, expeditious disposal of anti dumping/Safeguard Measures, fiscal reliefs to SMEs and provision of low cost credit to them.

The Government has taken the following decisions in this regard:

(i) Reduction of Excise Duty from 14 per cent-10 per cent and then from 10 per cent-8 per cent.

(ii) Anti dumping duty/Safeguards were imposed in respect of following:

 

Soda Ash Imposition of Safeguard Duty 20 per cent
Caustic Soda Imposition of Safeguard Duty 15 per cent
Carbon Black Anti Dumping duty $78-$195 per MT country specific

 

(iii) DEPB rates were restored to March, 2008 level.

(iv) 150 per cent weighted deductions of expenditure on R&D for recognized R&D units.

(v) Period of credit for exports was increased from 180 days to 270 days.

Foreign Direct Policy in Chemical Sector

In chemical sector, 100 per cent FDI is permissible. Manufacture of most chemical products inter-alia covering organic/inorganic, dyestuffs & Pesticides is delicensed. The entrepreneurs need to submit only IEM with the Department of Industrial Policy and Promotion, provided no locational angle is applicable. Only the following items are covered in the compulsory licensing list because of their hazardous nature.

  • Hydrocyanic acid & its derivatives
  • Phosgene & its derivatives
  • Isocynates & di-isocynates of hydrocarbons

Key Export Destination Markets

  • USA
  • U.K.
  • France
  • Netherlands
  • Belgium
  • Spain
  • South Africa
  • Bangladesh
  • Malaysia and
  • Singapore

Key Players in Chemical Sector

  • M/s.United Phosphorous Ltd, Mumbai
  • M/s. P.I.Industries, Jaipur M/s.BASF India, Mumbai
  • M/s.BASF India, Mumbai
  • M/s. Excel India, Mumbai
  • M/s.Atul Ltd., Bulsar
  • M/s. Colour Chem Ltd., Mumbai
  • M/s. Sudarshan Chemical Industries, Pune
  • M/s.Colourtex, Ahmedabad
  • M/s. Monsantu Chem Ltd., Mumbai
  • M/s. Jubilant Organosys Ltd., New Delhi
  • M/s. Herdilia-Schentady Ltd. Mumbai
  • National Organics Chemicals Ltd., Mumbai
  • DCM Sri Ram Consolidation Ltd., New Delhi
  • M/s. Gujarat Heavy Chemicals Ltd., Ahmedabad
  • M/s. India Glycols Ltd., New Delhi
  • M/s. Gujarat Alkalies and Chemicals Ltd., Baroda
  • M/s.Rayalseema Chemcials, Hyderabad
  • M/s. Galaxy Organic Ltd., Mumbai
  • M/s. Lubrizol Ltd., Mumbai
  • M/s. ICI Calcutta

Useful Web links

DOING BUSINESS IN INDIA

A study has been done by Ernst and Young India with the intention of providing an overview of the investment climate, taxation, forms of business organisations, and business and accounting practices in India.

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