Jeet B Bhayani (SEBI RA)
16 Jan • 11:46 PM · SEBI-Registered Analyst
India's chemical sector is expected to expand to Rs. According to a report by Boston Consulting Group (BCG), the market will reach 24,900 billion (US$ 300 billion) by 2030. The report highlights that growth in the sector will be fueled by robust domestic consumption in essential end-use industries such as automobiles, construction, agriculture, and personal care, backed by supportive government policies and a growing manufacturing foundation. Alongside demand-side momentum, India’s chemical sector is anticipated to gain from expanding export prospects as global supply chains progressively shift production from conventional manufacturing centres. The blend of growing domestic demand and export opportunities sets the sector up for continuous growth in the years ahead.
BCG’s analysis indicates that India’s strategic advantage, marked by a youthful labour force, competitive manufacturing expenses, and enhanced infrastructure, may draw more investment from international chemical producers. The report indicates that the growth of the chemical industry aligns with India’s wider industrial efforts, including Make in India and initiatives to improve value addition in the manufacturing sector. Export possibilities are anticipated to grow as Indian manufacturers enhance their capabilities to meet increasing demand from areas like Southeast Asia, Africa, and the Middle East. As the sector becomes more integrated into global value chains, it is expected to experience enhanced competitiveness and technological progress.
