Page 49 - CII ARTHA

OCTOBER 2025

Growing Stronger Post COVID Era Vision

In a competitive landscape, strong customer engagement is
The Indian chemical market has shown remarkable signs of paramount for sustained growth. Leading chemical companies
recovery since the COVID era. It has remained resilient and
demonstrated strong growth despite global market understand that building long-term client relationships and
disruptions and international policy changes. With demand encouraging meaningful engagement with diverse audiences is
crucial. Sustainability initiatives also play a crucial role in
steadily increasing, the sector is further solidifying the growth building customer trust and creating lasting value.
momentum even as other regions face ongoing economic
pressures. India is now the sixth largest chemical producer in With a strong foundation in core chemicals and a growing
the world and third largest in Asia, contributing a significant 7 footprint in high-value specialty chemicals, the industry is
per cent to the GDP of the country. Following the 3.4 per cent well-positioned to lead through innovation, sustainability, and
growth in 2024, the market is projected to grow by 3.5 per customer-centric strategies. This forward momentum directly
cent in 2025. supports India’s ambitious economic vision.

On the other hand, Europe is facing critical challenges in its The goal for Indian industry leaders is to prepare a roadmap for
chemical industry due to high energy costs and supply chain a US$4 trillion economy that has the potential to become a
issues. As India enjoys the advantage of being one of the US$10 trillion economy in less than a decade. Policy makers
most cost-effective producers, global chemical companies and Business leaders, who are trusted with the responsibility to
view it as an attractive investment destination. This factor will drive our rapid economic ascent, should be able to see a clear
be a key determinant of the nation’s long-term growth. picture of the urgency and opportunities facing India.

Specialty Chemicals and Strategic For the Indian chemical industry, currently valued at US$220
billion and projected to reach US$1 trillion by 2040, this is a
Global Diversification clarion call. It translates into a clear mandate to leverage
cutting-edge technology, innovate relentlessly, and scale
A key driver of the Indian chemical sector’s ascent is the operations responsibly. The goal is not only to meet growing
rapidly expanding market for specialty chemicals. The robust domestic demands but also to emerge as a global leader in
growth of this segment is outpacing the global growth. This sustainable chemical manufacturing, thereby becoming one of
surge is fuelled by advancements in important end-user the key enablers in realising India’s bold economic aspirations.
industries such as packaging, automotive, nutraceuticals, and
the thriving electric vehicle (EV) market - all demanding
customised, high-performance materials. To meet this
evolving demand, leading Indian chemical companies are
innovating and scaling up.
To capitalise on the surge in demand for specialty chemicals,
Indian chemical companies are increasingly pursuing
strategic global diversification. The EV sector, for example, is
growing rapidly in North America and Europe, while demand
for foundational chemicals, like soda ash, is expected to rise
in Asia and Africa as global capacity expands. Industry
leaders are adjusting to these shifts.

Innovation and Sustainability Fuel
Long-Term Growth

Sustainability and innovation investments remain the key to
unlocking India’s long-term growth potential in chemicals. The
understanding is clear that a company’s growth hinges on the
collective advancements made as an industry, making
collaborative R&D efforts vital. India has made remarkable
progress in this direction, with increased focus on emerging
technologies such as battery innovation, nanotechnology, and
sustainable chemistries, including the development of
bio-based surfactants. With the growing focus on green
chemistry, sustainability is no longer optional, but essential
for enhancing competitive edge and overall growth.

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