Doubling the turnover from USD 150 bn to USD 300 bn in 2025 is the goal set by the Indian Chemical Council (ICC). The caveat? Well, government needs to do its bit by creating the right climate – read as infrastructure development and policy changes by the government.
USD 75 to USD 100 billion needs to be pumped in by the industry to make this ‘doubling of the turnover’ a reality. The imports will have to go down and the exports will have to go up. The growth of the chemical industry is contingent on the growth of the other industries. For example, if the automobile sector grows, the demand for automobile batteries will see a growth. Hence the chemical industry that supplies chemicals to the battery manufacturers will see a growth. Likewise, if the construction industry sees an upward demand, they will need to buy more inputs from the chemical industry. According to ICC, the industry is growing at 10 percent for the last decade.
The ICC believes that the government has to help the industry with the necessary infrastructure – more and better ports, rail-road connectivity to the ports, cheap electricity and industrial water. The government also needs to work on the clearance processes of starting a new chemical manufacturing unit – the ‘ease of doing business’ has to improve. The government has to look into the environmental norms. More business-friendly norms for non-polluting chemical companies would be welcomed by the industry, as per ICC.
Hope the industry gets the support from the government agencies and the USD 300 billion target is achieved.