Gujarat’s chemical industry, which produces seventy-five percent of India’s chemicals, is showing signs of recovery after a difficult year. Although chemical exports fell by fourteen percent in FY 2024, recent data shows a 2.8 percent increase in exports for April and May 2024 compared to the same period last year.
There is a prediction of 7-9 percent growth for FY 2025, driven by a resurgence in both domestic and international demand. The forecast is a relief for the sector, which has faced significant challenges in recent months.
The specialty chemicals sector, accounting for twenty-one percent of the domestic industry, is expected to see margins recover. This segment had previously suffered due to costlier inventories and declining product realizations, but a good turnaround is anticipated.
The agrochemicals segment is experiencing increased demand both domestically and globally, partly due to supply chain disruptions that have led to more orders for Indian manufacturers. As reported by knnindia.co.in, government schemes are supporting sector growth, and India’s cost advantages in land, labour, and common facilities are enhancing its global competitiveness.
