5 Growth Drivers of the Indian Chemical Industry

As per a McKinsey report titled “India: The next chemicals manufacturing hub," India is expected to grow by 7-10% during 2027-40, boosting its global market share by three times by 2040. Tap to check the growth drivers contributing to the Indian chemical industry.

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Rising Domestic Consumption

At present, India consumes 70% of chemical production domestically, which is expected to increase by 20% in the next two decades.

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Changing Consumer Behaviour

A sustainable lifestyle has given rise to demand for eco-friendly products. And India is one of the leading producers of the chemicals required for sustainable products.

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Government Support

Govt. schemes, incentives and policy reforms like RoDTEP, PLI, and PCPIRs are contributing to the Indian chemical industry.

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Evolving Supply Chain

Indian chemical manufacturers and suppliers are effectively adapting to the changing global landscape to improve their efficiency and emerge as a trusted partner.

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Low Manufacturing Cost

An ample skilled workforce and availability of natural resources help in bringing down the chemical manufacturing cost, which provides an advantage in the global market.

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