A chemical future
In sharp contrast to the global chemical industry that is still recuperating from the effects of the economic recession, the Indian chemical industry is recording positive growth numbers. This has made the industry insiders optimistic about the sector’s bright future growth prospects.
According to predictions made by the Federation of Indian Chambers of Commerce and Industry (FICCI), Tata Strategic Management Group and Roland Berger Strategy Consultants, the domestic chemical industry is poised to grow from its present US$ 83 bn to US$ 200 bn by 2020.
While authenticating the above estimates, RK Bhatia Head at Chemicals & Pharmaceuticals division, FICCI, said that by the end of this year the domestic chemical industry would be worth US$ 100 bn.
The changing rules of business, surging consumer demands, technological upgradation and several other factors have positioned the Indian chemical industry to scale new highs. However, although projections of the industry’s growth story remain positive, the domestic companies are likely to face intense competition from their global counterparts — with a strong lineup of innovativeproducts — who are rapidly setting up their base in India.
Therefore, the key to remain competitive in such a scenario is to invest more in R&D activities on a continuous basis. In terms of efficiency and advancement, the domestic chemical industry in India will have to put in concerted efforts to make some prominent headway in the future and to remain competitive.
* The author is a member of the PROCESS India Editorial Team.