Are Speciality Chemicals Taking Centre-Stage In Indian Chemical Industry?

Valued at USD 32 billion, the speciality chemicals market represents 22% of India’s overall chemicals and petrochemicals market. In terms of trade, the speciality chemical industry in India accounts for more than 50% of all chemical goods exports. The speciality chemicals sub-industry is expected to experience significant growth in India. This growth is driven by strong domestic demand, increased exports, and the shift from manufacturing out of China. In this article, let’s explore how speciality chemicals are taking a central role in the chemical industry of India.

Growth In India

In 2021, the Indian speciality chemicals market was worth a whopping INR 3,474.68 billion and is predicted to expand to INR 8,140.83 billion in 2027, displaying a remarkable 15.45% CAGR compound annual growth rate over the 2022-2027 forecast period. Aarti Industries, one of the leading speciality chemical manufacturers in India, generated net sales of over 68 billion Indian rupees as of June 2022. The growth of the speciality chemicals market in India is driven by technological advancements that have created new specialized end-use applications. The chemical industry contributes significantly to India’s economy, accounting for one-third of global exports, 50% of India’s total exports, and 2% of world export revenues.

Shift In Demand

Major in-demand speciality chemicals are pharmaceutical chemicals, which serve as the starting point for producing pharmaceutical goods like pills, ointments, intermediates, and capsules. These pharmaceutical products are also in high demand due to global health concerns.

The trend is seen to be shifting towards more natural and eco-friendly speciality chemicals options such as eco-cosmetics, eco-food components and additives, bio-plastics, eco-insecticides, eco-pesticides, and bio-fertilizers gaining popularity due to the increasing demand for green and environmentally friendly products.

OFB’s Insight 

The Indian government’s initiatives, such as Make in India and  Atmanirbhar Bharat, are designed to support the flourishing chemicals and petrochemicals sector in India. As user industries continue to evolve, the Indian speciality chemicals industry will need to adapt and expand rapidly to meet the growing demands and capitalize on emerging opportunities. Sectors such as agrochemicals, chemicals used in textiles, electronics, and their intermediates are expected to register substantial growth, making speciality chemicals a key player in reshaping India’s economic landscape.

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