The Indian chemical industry stands out as one of the most diversified sectors, encompassing a wide range of commercial products across both small and large-scale units. It plays a crucial role with linkages to various segments of the economy, holding a position of paramount importance. Currently, the industry is undergoing a transformative phase, compelled to innovate within a digital landscape and bolster its manufacturing capabilities to emerge as a global hub. Simultaneously, it grapples with the pressing need for sustainability.
CII and KPMG in India have jointly unveiled a knowledge report titled ‘Chemicals Value Chain Transition – Addressing the Impact of ESG, Globalization, and Innovation’. The comprehensive report sheds light on the Indian chemicals sector, emphasising sustainability, digitalisation, and supply chain resilience. It serves as a call for action for stakeholders along the chemicals value chain to adapt to the evolving landscape.
The sector possesses the potential to become a prominent platform for chemical production, boasting advantages such as cost-effective operations, abundant raw materials, skilled labour, and favourable government policies. India strategically benefits from extensive coastlines and waterways, facilitating trade, import substitution opportunities, robust intellectual property protection, and a burgeoning domestic market.
The country is undergoing a significant transformation, propelling local players onto the global stage. With increasing domestic consumption, rising disposable incomes, and evolving consumer preferences, India is emerging as a global manufacturing hub in the chemical sector.
While being one of the largest consumers of chemicals globally, the country heavily relies on imports to meet its demand. To mitigate supply chain disruptions, organisations need to reimagine and revamp their supply chain management for uninterrupted business continuity and future growth.
Innovation is deemed indispensable for the chemical industry’s future growth. Key enablers include government support through funding for research and development (R&D), tax breaks, and infrastructure investment. Collaborative efforts between companies, universities, and government agencies are crucial for accelerating innovation.
As reported by APN News, additionally, investing in new technologies and R&D remains essential for sustaining growth and fostering innovation in the chemical industry. Implementation of digital technologies for process optimisation and the development of new materials, including bio-based alternatives, are integral components of this innovation journey.
