New Initiatives and continual concerted efforts for the research & development are key to the prolonged and sustained growth of Chemical & Petrochemical Industry sector. For the industry should opt for the application of new scientific innovations and technological advancements made so far. And there should be no dearth of funds.
Dr. T. Ramasami, Secretary in the Deparment of Science & Technology said this while inaugurating a two day National Seminar on Technology upgradation in the chemical and petrochemical industry here in New Delhi today. He said to be competitive in the global market, the chemical industry in the coming decades has to promote sustainable development by investing in technologies that protects environment and stimulates growth while balancing economic needs and financial constraints. A large number of captains of the chemical and petrochemical industry as also academia and policy makers were present on the occasion.
The two day seminar has been organised jointly by Federation of Indian Chambers of Commerce and Industry (FICCI), Department of Chemicals and Petrochemicals, Government of India and Indian Institute of Chemical Engineers (IIChE)-NR. IIT Delhi and Engineers India Ltd. are the Knowledge and Strategy Partners in this seminar. A knowledge paper prepared by them was also released on the occasion. The Seminar gives special focussed specially on emerging technologies in the sector.
It was highlighted that Indian chemical industry is an integral component of the Indian economy. The relevance of the chemical industry to the overall manufacturing sector can be gauged by the fact that 'Basic chemicals and chemical products' account for about 14% in overall Index of Industrial Production (IIP). Also, the industry has key linkages with several other downstream industries such as automotive, consumer durables, engineering, food processing etc. The industry produces and supplies more than 80000 products.
Thurst was laid upon the challenges to the Indian industry which include growing competition from other countries, lack of R&D, need of skilled workforce, feedstock as also infrastructure issues and presence of a large small and medium sector needing technology upgradation. It was in the light of the setting of the target of increasing the share of manufacturing in GDP to at least 25% by 2025 (from current 16%) as per the mandate of New National Manufacturing Policy.
Since the New National Manufacturing Policy has set the target of increasing the share of manufacturing in GDP to at least 25% by 2025 (from current 16%). These all are indications of the days of growth for this important sector. However, for that to be possible, significant investments in capacity creation, R&D, feed stock availability and infrastructure need to be created to enable the industry to be globally competitive.
It was pointed out that in 2010 the Indian chemicals industry generated total revenue of about USD 108 billion in 2010 (Source: CMIE). In the Chemical Sector, 100 percent Foreign Direct Investment (FDI) is permissible thru automatic route. Manufacture of most chemical products including organic/inorganic, dyestuffs and pesticides is de-licensed.
It was also highlighted that with Asia's increasing contribution to the global chemical industry, India emerges as one of the focus destinations for chemical companies worldwide. There is huge unrealised potential of further growth as indicated by the present very low per capita consumptions in the country. The domestic demand is rapidly increasing, and is being fuelled by approx. 200 million Indian middle class consumers.