The government has started various initiatives such as mandating BIS-like certification for imported chemicals to prevent dumping of cheap and substandard chemicals into the country. The Indian government recognises chemical industry as a key growth element and forecast to increase share of the chemical sector to ~25% of the GDP in the manufacturing sector by 2025.

Globally, India is the fourth-largest producer of agrochemicals after the United States, Japan and China. India accounts for ~16% of the world production of dyestuffs and dye intermediates. Indian colorants industry has emerged as a key player with a global market share of ~15%. The country’s chemicals industry is de-licensed, except for few hazardous chemicals. India holds a strong position in exports and imports of chemicals at a global level and ranks 14th in exports and 8th in imports at global level (excluding pharmaceuticals).

The US chemical industry is poised for a strong recovery in 2022 as economies reopen and restrictions are lifted, which should drive up plant utilization rates that were hit hard by the pandemic. US chemical volumes are expected to grow around 1.5% in 2021 and 3.0% in 2022, while shipments will likely increase by 8.0% in 2021 and 2022, following a 13.5% decline in 2020. US chemical exports are also expected to grow significantly as major economies reopen and import demand in partner economies improves.

How big is the global chemical industry?
The production of chemicals involves converting raw materials such as fossil fuels, water, minerals, metals, and so on, into tens of thousands of different products that are central to modern life as we know it. The total revenue of the global chemical industry is estimated to be four trillion U.S. dollars.

Market Growth Sectors:
Construction: The strength in the construction industry has been a key growth driver for chemical sales. The work from home culture has expanded the number of home sales.

Automotive: The rebound in the automotive industry is another growth driver, as auto sales are expected to cross 17 million in 2021 and 2022 despite the production constraints caused by shortages of key input materials such as semiconductor chips. Growth in the automotive sector should drive the demand for base chemicals and performance plastics in 2022.

Health and safety: As the threat from coronavirus still looms based on variants, demand for personal protective equipment such as masks, gowns, and gloves should remain high, driving ethylene and propylene sales. The industry could still pivot some of its production capacity toward the products and materials needed to combat the pandemic, such as isopropyl alcohol and ethanol. Industry players are likely to ensure a strong supply of chemicals required to produce antibacterial wipes, disinfectants, and surfactants for soaps and hand sanitizers.