Introduction
The WANA (West Asia and North Africa) region has evolved as one of the most promising areas for Indian chemical export. As per the 61st annual report of CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council set up under the Ministry of Commerce and Industry, Government of India), India’s chemical export to WANA increased by 109% in 2023-24, making it the fastest-growing area of export. This tremendous growth indicates an increase in business opportunities for the chemical industry in the Middle East and North Africa region and India’s increasing position as a dependable supplier of value-added chemical products.
This growth potential represents a unique opportunity for Indian startups and entrepreneurs. By a combination of strategic planning, quality compliance, and government schemes, a solid export footing can be set for India in the WANA region.
The Importance of the WANA Market
Strategic Importance
The WANA or Western Asia North Africa region refers to the Middle East alongside North Africa. It serves as a focal point for the:
- Upstream oil and gas industries and sectors for downstream chemicals.
- Construction and infrastructural works requiring paints, adhesives, and coatings.
- Agriculture is driving trade and agrochemicals.
- Cosmetics and Personal care industries, which are growing swiftly with the increase in consumer purchasing power.
Trade Benefits of WANA for India
- Lower shipping expenses due to geographical proximity.
- Strong cultural and business ties.
- Preferential access through treaties and bilateral trade agreements.
Related: India Government Schemes For Entrepreneurs: Fueling Industrial and Manufacturing Growth
Export Performance of Chemicals to WANA
CHEMEXCIL Data 2023-24
| Year | Export Value (USD Mn) | Growth (%) |
| 2021-22 | 2,376 | — |
| 2022-23 | 4,265 | +79% |
| 2023-24 | 5,272 | +109% |
Source: CHEMEXCIL Annual Report 2023-24
The data paints a clear picture of India’s growing presence and share within the WANA chemical industry
Products India Exports to WANA
India exports a diverse range of chemical products to WANA, which comprises of:
- Organic Chemicals: Citric acid, acetic acid, formaldehyde
- Inorganic Chemicals: Sulphuric acid, caustic soda
- Agrochemicals: Fertilizers, pesticides
- Dyes and Pigments: Reactive dyes, azo dyes
- Cosmetics and Essential Oils: Herbal cosmetics, sandalwood oil, eucalyptus oil
Segment Wise Contribution (2023-24)
| Segment | Export Value (USD Mn) |
| Organic & Inorganic Chemicals | 3,879 |
| Agrochemicals | 645 |
| Dyes & Pigments | 310 |
| Cosmetics, Soaps, Toiletries & Oils | 438 |
Source: CHEMEXCIL Annual Report 2023-24
View our books on Chemical Technology (Organic, Inorganic, Industrial), Fine Chemicals
WANA Drivers of Demand
Infrastructure Boom
Construction megaprojects that are underway in Saudi Arabia, UAE, and Egypt are increasing the need for paints, adhesives, and construction chemicals.
Agriculture and Food Security
Targeted in Egypt, Morocco, and Saudi Arabia, the investment in agrochemicals is to enhance crop productivity in dry regions.
Emerging Personal Care Industry
The cosmetics industry in the Middle East is rapidly growing. This expansion creates a higher need for essential oils, herbal cosmetics, and specialty chemicals.
Industrial Diversification
Along with the other WANA economies, there is a move away from oil dependence which drives the need for specialized and performance chemicals.
Support for Exporters from the Government
CHEMEXCIL’s Activities
CHEMEXCIL helps exporters access the WANA markets via:
- Buyer and seller meet in Ethiopia, Kenya, the UAE, etc.
- Khimia 2023, Indo Beauty Expo, and Coating Expo Vietnam
- Webinars on compliance and trade policy
Export Incentives
| Support Provided | Details |
| MAI Scheme | 50% reimbursement for overseas registration of the products. |
| RoDTEP | Refund of taxes for exported goods. |
| EPCG | Duty-free capital goods. |
| Advance Authorizations | Zero duty on imported materials. |
Related: How Indian Startups Can Capitalize on the UAE Chemical Export Market: A $1.2 Billion Opportunity
India’s Chemical Export Forecast for WANA
| Year | Estimated Export Value (USD Mn) |
| 2024-25 | 5,850 |
| 2025-26 | 6,400 |
| 2026-27 | 7,100+ |
Emerging Areas of Growth
- Green and sustainable chemicals
- Chemicals for agro-farming in arid regions
- Cosmetics are actively marketed for Halal and herbal certification
How Startups Can Target the WANA Chemical Export Market
Step 1. Determine the Market and Feasibility
Access CHEMEXCIL’s information to map in-demand items, including agrochemicals, cosmetics, and dyes.
Step 2. Compliance Issues
- Acquire IEC (Import Export Code)
- Register with CHEMEXCIL
- Compliance with local WANA entities, such as the Saudi Food and Drug Authority and the UAE ESMA, also needs to be observed.
Step 3. Setting Up Manufacturing
- Construct a compliant plant to GMP, ISO, and BIS standards.
- Target high-margin small-batch specialty chemicals.
Step 4. Trade and Marketing
- Join ArabPlast, Beautyworld Middle East, and AgroChem Expos.
- Use B2B platforms and network through CHEMEXCIL.
Step 5. Transport and Distribution
- Use major ports such as Jebel Ali, Dubai, Alexandria, and Tangier in Morocco.
- Work with local distributors to penetrate the market.
View our Project Reports on Chemicals (Organic, Inorganic, Industrial) Projects
Challenges and Solutions
Challenges
- Stringent compliance regulations.
- Payment and trade security.
- Price competition.
- Supply chain interruptions.
Solutions
- Hire consultants and obtain REACH and halal certifications.
- Use LCs and ECGC insurance.
- Focus on niche, value-added products.
- Diversify suppliers and warehousing strategic locations.
Case Study: Agrochemical Success in Morocco
An Indian MSME that exported bio-based pesticides targeted Morocco and capitalized on the sustainable agriculture market. Over two years, the company experienced a 40% revenue increase. It also secured long-term distributor contracts in the process. Under the MAI scheme, CHEMEXCIL provided guidance and subsidy support, significantly streamlining this process.
Frequently Asked Questions
1. Which Indian Chemical products have the greatest demand in WANA?
Organic and inorganic chemicals, agrochemicals, cosmetics, and dyes.
2. Are halal certifications needed?
As far as food products and cosmetics are concerned, halal certification is strongly advised.
3. Which Indian states are the most important centers for the chemical industry?
Tamil Nadu, as well as Mumbai and Gujarat, are the most important centers of Indian chemical exports to the WANA region.
4. What is the approximate lead time for starting exports to WANA from India?
New and registered startups can begin within 3 to 6 months of getting the compliances done.
Why Now Is the Right Time
- Demand for chemicals from the WANA region is growing at over 10% annually.
- In 2023-24, India achieved 109% growth in exports.
- CHEMEXCIL provides strong institutional backing for the exports.
- Global trends are moving toward environmentally friendly and value-added chemical products.
Discover the Right Business for You With Our Startup Selector Tool
Role of NPCS in Startup Success
Niir Project Consultancy Services (NPCS) prepares Market Survey cum Detailed Techno Economic Feasibility Reports for entrepreneurs.
NPCS’s reports, which include the manufacturing process, raw materials, plant layout, and even the financials, are comprehensive.
Startups are able to explore the feasibility of establishing new industries or export ventures due to the thorough assistance NPCS offers.
