Editorial December-2019 Welcoming The New Year 2020
According to an article published in the Business Standards, it seems the chemicals and the petrochemicals industry is witnessing a rapid expansion in India. As per the statement coming from Union Minister of Chemicals & Fertilizers, D.V. Sadananda Gowda while inaugurating the Summit on Global Chemicals & Petrochemicals Manufacturing Hubs in India 2019. He states that
- Chemicals & petrochemicals sector has a significant potential to help India reach its goal of a $5 Trillion economy by 2025.
- The current growth of the sector can be further accelerated with a mix of policy changes and right coordination
- Sector expected to grow a CAGR of 9.3% from $163 billion to #304 billion market by 2025
This was further reiterated by Mr. Ajay Kadakia, Chairman, CHEMEXCIL, said, “Indian chemical industry is currently valued at around USD 163 bn and expected to touch USD 325 bn by year 2025. The export performance of CHEMEXCIL’s items for the period April to March, 2019 was USD 19091 million as against USD 15927 million of the corresponding period of last year, registering a growth of around 20%. In the current year, the exports have increased by 0.68% i.e. from USD 10986.44 million in April-October, 2018 to USD 11060.97 million in April-October, 2019.” He further added, “MSME exporters are concerned about existing export incentives and recent Trade Remedy measures initiated on import of basic inputs. Exporters also seek clarity on the proposed RoDTEP scheme and forthcoming Foreign Trade Policy which will auger well for exports."
The government of India adopted the policy in 2007 to set up PCPIRs (Petroleum, Chemicals and Petrochemicals Investment Regions) currently Dahej (Gujarat) is the best location compared to all others which includes Visakhapatnam (Andhra Pradesh), Paradip (Odisha) and Cuddalore (Tamil Nadu). The reasons cited for selecting Dahej among other range from overall infrastructure development to project financing.
Also, there has been great focus on the Indian specialty chemicals transformation and what China is doing now. The following are the key finding from one report which analyses top 33 Chinese chemical players:
- China is not going out of the market but shifting its focus more towards final products which is a good thing for Indian intermediate suppliers
- China is aggressively investing in R&D (top 33 companies R&D spend upto $1 bn in 2014 to 3.5 bn in 2018)
- Global trade terms are getting balanced vs earlier largely in favor of upstream buyers which is again good for the India intermediate suppliers)
According to one June 2019 article from ACS, it claims that the rising business investment will continue to drive U.S. GDP growth, though at slower rates than the previous two years. Growth in consumer spending, while moderating, is also making a positive contribution. GDP is projected to rise by 2.5 percent in 2019, 1.9 percent in 2020 and 1.8 percent in 2021. The chemical industry will be source of strength, with growth of 2.5 percent in 2019 and 3.0 percent in 2020. In fact, chemical industry growth will exceed that of the U.S. economy through 2024.
Lastly, for the year 2020 we have several global exhibitions and we want you to know about it well in advance. We are media partners with the most important and the elite and want to make sure you are a part of it as an exhibitor or visitor. Please visit our events page on our website for more details. Also, do signup on our online LEADS PLATFORM as a buyer to post your free buy enquiries or as a supplier to get your product leads.
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