The Indian Chemicals Industry is one of the most diversified among other industrial sectors covering a multitude of commercial products and comprises of both small scale as well as large scale units. With linkages to several other sectors of the economy, it enjoys a position of paramount importance. It now stands in the midst of a transformative change - having to innovate in a digital landscape and strengthening its manufacturing prowess to become a global hub, all the while contending with growing sustainability imperatives. The country is witnessing extensive transformation that is turning local players global, with the country fast appearing as a global manufacturing hub. Burgeoning domestic consumption, increasing disposable incomes, and switching consumer preferences are quickening already strong demand, putting India on the forefront of global chemical manufacturing map and making it a hub for the world.
Sustainability - ESG factors have become increasingly important for companies in the chemical sector globally. Sustainability and responsible practices are becoming more important for investors and stakeholders, and they are increasingly considering ESG performance as a key factor in their investment decisions. It is important for stakeholders in the chemical sector to have a sustainability vision.
India as Chemicals Hub 2.0 - India is one of the largest consumers of chemicals in the world, but it is also heavily dependent on imports to meet its demand. Given the high import dependency, it is very critical for countries like India to ensure an uninterrupted global supply chain. Many chief executives now identify supply chain turmoil as the greatest threat to the sectoral growth which has a direct impact on national economies. Organisations need to re-imagine and manage their supply chain differently to ensure business continuity and growth for the future.
Innovating for brighter future for chemicals - Innovation is essential for the future of the chemical industry. There are several enablers that can help to sustain growth and innovation in the chemical industry.
These include:
- Government can play a crucial role by supporting innovation in the chemical industry by providing funding for research and development (R&D), creating tax breaks for R&D, and investing in infrastructure
- Collaboration between companies, universities, and government agencies can help to accelerate innovation
- Investment in new technologies and R&D is essential for sustaining growth and innovation
- Implementation of digital technologies to optimise processes and developing new materials with improved properties and bio-based materials
