Tata Strategic Report Highlights Critical Issues in Indian Chemical Industry
The Tata Strategic Management Group presented a report on Indian chemicals industry at the 5th edition of ‘India Chem Gujarat 2017.
Titled “India Chem Gujarat 2017” was released by Ananth Kumar and Vijay Rupani.
The report is a source of knowledge and information on the current scenario of the chemical industry highlighting the importance of chemicals in everyday life by taking the reader through the key sub-segments such as petrochemicals, agrochemicals, speciality chemicals and fertilizers.
The report also highlighted the critical issues the chemical industry is facing today like, availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business. These issues have hindered industry growth and it needs Government interventions to achieve its true potential. Adoptions of alternate feedstock, increasing investment in R&D and achieving scale through collaboration are some of the key levers industry can act upon to overcome these challenges.
The special feature on Gujarat illustrates the advantages it offers. The chemical industry is today the largest and fastest growing component of Gujarat’s manufacturing sector. Gujarat as a state contributes a major share of the country’s chemicals output: 63 percent of petrochemicals, 53 percent of chemicals and 45 percent of pharmaceuticals.
The report also highlighted the advantages that Gujarat as a state offers with its business-friendly policies & robust infrastructure which are helping the chemical industry to contribute to the Gujarat growth story. However, there is a need for the state to compare itself with international examples for an integrated development which will be a key to make Gujarat as a chemical hub.
This report includes a special section on ‘Making India the Investment Magnet for Chemicals: Strategic Imperatives’. This section states that improving on EODB, integration of chemical & petrochemical sector, identifying strategic products of our interest, defining consumer standards and building the right non-tariff barriers will be crucial for India to realize its aspiration of being the 4th largest chemical manufacturer in the world.
“Indian chemical industry is on the cusp of a growth trajectory. This industry should be looked at as a part of Indian economic growth story. India’s national manufacturing policy aims to enhance the share of manufacturing in the country’s GDP to 25 percent and create 100 million jobs by 2022, and the chemical industry would have a very important role in this,” said Modan Saha, CEO, Tata Strategic Management Group.
“With 62 percent of petrochemical and 53 percent of chemicals production share, Gujarat is aptly referred to as ‘a chemicals and petrochemical capital’ of India. With eastern countries gaining more prominence in a global chemical market, role of this state becomes crucial in the coming future. Feedstock security, strong R&D, constant product innovation to cater to changing customer needs will go a long way in consolidating India’s position in a global chemical market,” added Manish Panchal, Sr Practice Head – Chemical & SCM, Tata Strategic Management Group.
India Chem Gujarat 2017 witnessed a large participation of small-scale industries through MSME along with the participation of the companies from process technology, pumps & valves with the support of the department of heavy industries, Government of India.
Disclaimer: Echemi reserves the right of final explanation and revision for all the information.