Chemicals Industry

According to the Indian government's Department for Chemicals & Petrochemicals, market volume for the chemicals industry is expected to increase to between 80 and 100 billion US dollars by 2010. In a global comparison, Indian is ranked eighth for consumption of plastics. By the year 2010, the subcontinent is expected to move up to third place, consumption increasing to an estimated 12 million tons. Experts have also observed an upward trend in the consumption of rubber: some 4.5 billion US dollars in sales is generated by the rubber industry, and roughly half of that is to produce tires for the automotive industry.
 
As the importance of the Indian textiles industry grows, demand for chemical fibers has also increased over the past few years. Synthetic fibers currently account for an approximately 40 percent share of textiles and clothing. Prior to the global financial crisis, expectations were that demand would increase by 65 percent by the year 2012. Demand for synthetic fibers was expected to increase by as much as 75 percent by 2012.

Chemicals production in September 2008 was down 3,6 percent compared to the same period a year earlier, but it saw a sizeable increase of 6,1 percent during the period from April to September 2008. This industry is traditionally one of the most rapid growing segments in India. Sales for 2006/2007 reached a total of 70 billion US dollars.
 
Demand for foreign products increased by 80 percent during the first fiscal quarter of 2008. Demand for industrially produced fertilizer was particularly high. German chemicals manufacturers mainly delivered organic chemicals and plastics to Indian in 2007/2008. Total imports of organic chemicals increased by 34 percent to 8.1 billion US dollars. Deliveries from Germany increased by 25 percent to 380 million US dollars.


Pharmaceuticals Industry

The Indian pharmaceuticals industry grew again last year at a rate of 14 percent. Between now and 2010, this sector is expected to grow at an average rate of 16 percent per year. Because patents on several medications are due to expire over the next few years, and given the growing health awareness among the Indian population and the resulting anticipated increase in expenditures for medicines, continued growth is expected in the pharma industry.
 
Between 250 and 300 companies in the organized sector are responsible for approximately 70 percent of production in the pharmaceuticals industry. The ten largest pharma companies generate approximately 30 percent of sales. There are still some 10,000 smaller licensed enterprises in this organized sector. The pharma industry is one of the country's strongest export industries. In the generic sector in particular, Indian manufacturers top the list. According to the Departments for Chemicals & Petrochemicals, a total of 100 billion US dollars will be invested in new plants and machinery and the expansion of existing facilities to manufacture chemical and pharmaceuticals between now and the year 2015.
 
The Department for Chemicals & Petrochemicals estimates that production volume will reach a total of 35 billion US dollars for fiscal year 2007/2008. Of that, basic organic chemicals account for 20 billion US dollars, specialty chemicals for 9 billion US dollars, and agricultural chemicals, pharmaceutical goods and biotechnology account for 6 billion US dollars.
 
Source: www.gtai.de