The specialty chemicals sector in India has emerged as a notable player in the global market, showcasing significant growth opportunities. Through the conversion of raw materials into crucial components, the Indian specialty chemicals industry plays a pivotal role in fueling various sectors on a global scale.
India’s burgeoning consumption levels and robust industrial foundation, supported by a growing pool of skilled professionals, are positioning the country as a significant hub for both demand and supply. Furthermore, the advancements in technical expertise achieved over the past decade are paving the way for India to emerge as a key global center for innovative and essential compounds.
On a global scale, the chemical industry stands as a vast market with an estimated value of USD 4.7 trillion, positioning India as the fifth-largest chemical producer globally, thereby underscoring its prominence in the international arena. Commodity chemicals constitute the majority share of the global chemical industry, capturing approximately 80% of the market, while specialty chemicals occupy the remaining 20%, highlighting the diverse composition of this sector.
Upon closer examination of India, the domestic chemical industry boasts a substantial value of USD 200 billion, with specialty chemicals accounting for 18% of this total, equating to around USD 36 billion. This particular sector showcases significant potential for further expansion into international markets. In the past five years, India’s chemical industry has demonstrated a robust compound annual growth rate (CAGR) of 11.7%, signaling a burgeoning sector. The rise of the Indian specialty chemicals market can be attributed to the nation’s proficient process engineering skills, cost-effective manufacturing capabilities, and abundant labor force.
The projected growth of this sector suggests a sustained upward trend, with a projected compound annual growth rate of 12.4%. By the year 2025, it is estimated to reach a value of USD 64 billion. This anticipated expansion highlights India’s growing significance and changing position in the global specialty chemicals market, paving the way for a greater impact on the global chemical industry.
