Global Market Growth of Chemical Industry
The researcher from NPSC has analyzed India’s trade flow in the chemical industry to find out and to understand themes for investment in the chemical industry. As chemicals are a significant part of India’s total trade flow, consistently ranking third in imports and fourth in exports for the last five years. After analysis of chemical exports and imports, coupled with a review of opportunities emerging from global trends, shows two themes for investment. Having self-sufficiency in petrochemicals to plug the shortfall of domestic supply of 52% in petrochemical intermediates: 6 value chains makes up about 77% of this shortfall, showing an opportunity worth approx. $11 billion. Ramping up exports in some selected areas, such as specialty chemicals to get a larger share of global value. The industry of chemicals contributes significantly to India’s trade volume. Capturing developing opportunities in the near term can have a positive difference to India’s chemical companies and the overall industry.
Global Market Growth of Chemical Industry
Chemical industry if India is one of outperformance and promise. The chemical industry, even in an environment of global uncertainty, has been a consistent value creator and has remained an attractive hub of opportunities. The trends affecting the global chemical industry worldwide can lead to near opportunities for chemical companies in India. The way chemical players prioritize and tap the value-creating potential can shape the future of the industry in India and also the country’s trade performance. The chemical industry’s growth will continue despite the economic challenges that have caused India’s GDP growth rate to drop to 4.5 % in the third quarter of 2019. The long- term perspective shows that India has averaged annual GDP growth of 7% for the last 30 years. India is also working on becoming a $5 trillion economy.
Global Trends: Uncertainty for the World, Possibilities for India
Five trends are shaping the global chemical industry. Although these trends present uncertainty in the global market, these could open near-term opportunities in India. A lot of global oil and gas majors are turning their sights on downstream chemical opportunities. This might increase the focus on petrochemicals in India, and high investment in the sector can ease feedstock challenges and can boost self-sufficiency. The structure of the chemical industry of China is changing because of strict environmental norms, not so flexible financing and consolidation. Whereas these shifts could benefit selected large players in the long run, it can cause uncertainty for international players that source chemical for China and this would create opportunities for Indian chemical companies in certain value chains and segments, mostly for the short term. The trade conflicts have erupted around the globe, mostly among China, Western Europe, and the US. And it is leading shifts in global supply chains; affecting bilateral trade between China and the US. The large chemical markets which remain accessible in this scenario can lead to opportunities for chemical companies in India. Industry-wide, there is a considerable move towards prioritization of core businesses and consolidation on a big scale, often through big-ticket mergers and acquisitions. For Indian Players, the scale will matter even more as it can help to fortify their competitive advantage. As digital technology is establishing itself as a lever to enhance efficiency and productivity. A lot of companies across the globe are embracing digital potential; chances are that Indian companies can also tap into this opportunity to expand their profit margins.
Conclusion
The project report by NPCS on “Chemicals (Organic, Inorganic, and Industrial) Projects” provides detailed information regarding the chemical industry. It consists of all the present and future growth of the market along with the characteristics and segmentation of the industry. The report has been helpful for all the people related to the industry as it has every micro to macro detail.
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