The Specialty Chemicals industry has played a pivotal role in the growth story of the chemical industry in India.
India continues to be one of the fastest growing markets in the Global Specialty Chemicals industry. As per our knowledge partner Avendus’ estimates, Indian Specialty Chemicals industry is estimated to grow at 12%+ CAGR over the next 5 years to reach USD 64 billion by 2025.
Growing disposable incomes, rapid urbanization, and strong growth in demand for premium products in end-user segments are some of the factors that are likely to drive strong growth in the Indian Specialty Chemicals industry.
Recent events such as US-China trade war and the outbreak of COVID pandemic have prompted players across the globe to rethink the vulnerability of their supply chains, stemming from very high dependence on any single nation.
As a result, increasing number of companies across the globe are actively looking at de-risking their sourcing strategy, and adopting a “China, plus one” approach to have a better control over their supply chains
This re-evaluation of supply chain represents a significant growth opportunity for the Indian Specialty Chemicals industry.
India’s low-cost manufacturing capabilities, strong process engineering capabilities and abundant availability of skilled manpower make India an attractive manufacturing destination for global players.
The feedstock for Specialty Chemicals industry forms a significant part of India’s import basket, and hence, it is imperative for India to ensure the growth of the domestic Specialty Chemicals industry in order to become truly self-reliant (‘Atmanirbhar’).
While the macro-economic scenario is likely to remain uncertain until a vaccine is discovered, a large part of the Specialty Chemicals industry continues to remain resilient to the economic impact of the pandemic.
This presents a great opportunity for all the stakeholders to discuss the potential ways in which India can leverage this unparalleled opportunity to cement its position in the Global Specialty Chemicals industry.