Image Source : government.economictimes.indiatimes.com
The recent outbreak of coronavirus that originated in China has disrupted the supply chain across the globe, resulting in a dearth of goods for the countries that heavily rely on imports. Like many other countries, India too is facing the shortage of several goods such as electronic products, consumer goods, chemicals, etc. Hence, the government has decided to make India self-reliant by minimizing the dependence on other countries. Also, the on-going border conflict with China has led to a paradigm shift in the country’s policy towards China. The government of India has recently banned 59 Chinese apps including Tik Tok, UC Browser, Hello, etc. Also, the Indian government is pushing for the manufacture of goods that we are currently importing from China.
Chemicals imports form a major portion of India’s imports from China. According to World Integrated Trade Solution, the total worth of chemical imports of India from China in 2018 was over USD 16,368,940.42 thousand. Though the government of India is not ready to completely ban imports from China, the government is encouraging enterprises to manufacture goods in the country under ‘Make in India’ and ‘Atmanirbhar Bharat’ schemes so as reduce imports from other countries, especially China.
As India is preparing itself to become self-reliant, let us have a look at some of the chemical manufacturing processes with ample scope in India.
The pharmaceutical industry in India is one the fast sectors with the potential to compete with the global market. Enterprises should focus on R&D to compete with global manufacturing firm and achieve success.
In the agriculture-dependent country’s like India the demand for agrochemicals like fertilizers and pesticides is quite natural. India is currently one of the largest manufacturers of agrochemicals in the world. Considering the increasing agriculture production and fast-growing population, there exist potential opportunities for the manufacture of agrochemicals in India.
3. Alcohol-based Chemicals
Alcohol-based chemical manufacturing occupies a major position in the Indian chemical industry with its tremendous potential to boost the country’s economy. These chemicals are used in the manufacture of synthetic fibres and synthetic yarn, drugs & pharmaceuticals, agrochemicals, personal care products, dyestuffs, pigments, flavours & fragrances etc. So, the demand for alcohol-based chemicals is always high. Alcohol-based chemicals are primarily produced from molasses, a by-product of sugar manufacturing. India, being the largest producer of sugarcane, manufacture of alcohol-based chemicals is relatively cost-effective for enterprises planning to foray into alcohol-based chemical manufacturing.
4. Basic Chemicals
There is a huge scope for the manufacture of basic organic chemicals like Methanol, Aniline, Alkyl Amines and its derivatives like Formaldehyde, Acetic Acid and Phenol and inorganic chemicals like Sulphuric acid, Caustic soda, Soda ash, Chlorine, Phosphoric acid, Carbon black, Titanium dioxide, etc. The demand for these chemicals has been increasing, however the domestic supply is not growing at the required pace creating a wide demand-supply gap.
5. Speciality Chemicals
Speciality Chemicals like paints and coatings, plastic additives, construction chemicals, homecare surfactants, textile chemicals, flavours and fragrances, water chemicals, cosmetic chemicals, paper chemicals, printing inks, rubber chemicals, etc. are in high demand in the country. Growing urbanization in the country is expected to drive the demand for these chemicals in the country.
At SolutionBuggy, which is an exclusive and dedicated platform for the Manufacturing and Chemical Sector in India, we have seen a spurt of new chemical plant setup. New entrepreneurs who looking for manufacturing business ideas and industries who want to diversify into the chemical industry face a lack of information on the various market opportunities in this sector. So SolutionBuggy has been on the forefront to seamlessly bridge the gap between the industrial sector and professionals/consultants for on-demand consultation and services including projects.