Chemicals Market India The Indian Market for Chemicals is on Growth Curve
India's market for chemicals is estimated to have a volume of US $ 35 billion at least. The increasing wealth of the Indian population and accumulated needs have analysts expecting further growth in the future, a new market report by Germany Trade and Invest says.
Mubai/India – India's chemical industry, although still having somewhat of a backlog to the European or American industry leaders, is still on a growth curve – this is the conclusion of a recent market report by the German economic society Germany Trade and Invest. The country is estimated to be the world's 12th largest producers of chemicals and expected to profit from its emerging economy and consumer demand. The IIP index of industrial production for chemicals rose by 2.3 percent within the last year. An even higher growth is expected for the current year, mostly driven by a post-crisis rise in market demand of automotive supplies, building and construction and consumer goods.
India's Ministry of Chemicals and Fertilizers rates the countries chemicals market with US $ 35 billion (US $ 20 billion of which are the market for basic chemicals while the speciality chemicals market is rate with US $ 9 billion). The Indian Chemical Council even act on the assumption of a total US $ 68 billion market (basic chemicals US $ 33 billions, speciality chemicals US $ 17 billions). Both parties still expect a big potential for growth in the Indian chemicals market.
Demand for Pharmaceuticals Drives the Indian Chemicals Market
Driving force of the Indian chemicals market was the demand for pharmaceuticals, but also pesticides as well as colours and paints showed an exceptional market performance. The Indian annual market for pharmaceuticals was estimated with 563.7 billion rupees (US $ 12.8 billion) for 2009/2010 by the Centre for Monitoring Indian Economy. Pesticides went up by 8 percent to 136.9 billion Rupees (about US $ 3 billion), about the same size as the market volume of colours and paints. Also fertilizers showed a solid growth within the last year, a development that is further stimulated by the governmental subsidies programme NBS.
Most basic chemicals showed a significant drop in market volume. Only Benzol, though a comparatively small market segment, showed good values. Especially synthetic resins (- 6 percent) and caustic soda (- 21.6 percent) performed poorly. The market for Urea, soaps and cleaning agents remained more or less stable.
Increasing Prosperity to Drive Demand for Pharma Products in India
The Indian output of pharmaceuticals is the third largest in the world. Analysts predict strong growth rates, driven by a growing domestic demand. The Indian market for pharmaceuticals is expected to grow by an average rate of roughly 20 percent per year up to US $ 74 billion in 2020. Experts assume that an increasing prosperity will also sharpen the Indian population's interest in strong trademarks. Drugs against diabetes and gastric ulcer are the show the highest growth rate on the Indian market.
Since the Indian average expenditure for personal hygiene products is about US $ 3.4 per year, analysts expect a big growth potential for cosmetics in the near future.