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Opportunities in Chemical Industry in Ahmedabad

The state of Gujarat is known as the chemical hub of India. It accounts for 62% of petrochemical production, 35% of other chemical production in the country and 18% of India’s chemical exports. The chemical industry in Gujarat consists of more than 500 large and medium scale industries and more than 16,000 small scale industries. Gujarat is one of the leading suppliers of bio-fertilizers, seeds, urea and other fertilizers in the country. Initiatives from the government, world-class infrastructure required for the chemical industry, strategic location in the country, availability of skilled and cost-effective workforce, abundant availability of raw materials make Gujarat a go-to destination for investments in the chemical industry.

Government Initiatives for the Sector

The Government of Gujarat has been taking a lot of steps to promote the chemical industry in the state. Some of the incentives by the government for industries manufacturing speciality and fine chemicals include:

  • Graded interest subsidy of 7% for MSMEs and 2% for large enterprises with an investment of INR 1000 crores
  • Incentives of 50% of the total expenditure (limited to INR 20 crores) for the industrial parks in private areas or GIDC estate with minimum 25 industrial units
  • Up to 80% assistance (limited to INR 10 crores) in the total cost of plant and machinery testing equipment
  • Up to 75% assistance of the total project cost as approved by SLAC
  • Projects with more than INR 1000 crore, providing employment to at least 2000 people will be incentivised as per the recommendation by the SLAC

The Government of India recently approved the PLI Scheme for Advanced Chemistry Cell (ACC) Battery Storage. This decision is expected to boost the chemical industry across the country, including Maharashtra. Apart from the PLI Scheme, there are several other schemes for the chemical industry such as Chemicals Promotion Development Scheme, Scheme for setting up Centre of Excellence, Export Promotion Schemes, etc. through which entrepreneurs can avail benefits from the government.

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Gujarat is the most industrialized state in the country. With rapid industrialization, the demand for chemicals is also increasing across the country, which in turn is boosting the opportunities of the chemical industry in the state.

Reliance Industries Limited, ESSAR, ONGC, Shell Chemicals, DyStar, Hindalco Limited, TATA Chemicals, etc. are some the major chemical industries. In addition to the large industries, the state also has a large presence of MSMEs which play a major role across the value chain in the industry.

If you are a small business owner planning to enter into the chemical industry in the state and looking for consultancy in Gujarat for chemical engineers or chemical consultants in Ahmedabad, kindly register with SolutionBuggy. We provide you access to trusted and verified chemical engineering consultants in Gujarat who can assist you in setting up your chemical plant.

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