May’s inaugural meeting of the India Chemical Council highlighted the 8.9% growth for the country’s chemical industry from 2006 to 2007. The industry has revenues of $50 billion, not counting refining and fertilizers, which contribute $100 billion in sales a year. A leading sector is the pharmaceutical industry, which account for 22% by value of the global generic drugs market and is expanding 10% annually. Another promising sector is polymers, the country’s use of which is expected to triple to 12 kg per capita by 2012. Infrastructure investments of $515 billion, with 30% of the funding from the private sector, are set for the next five years. Of this funding, $161 billion will be used to fix power shortages, a major roadblock for chemical manufacturers. The government also will help establish petroleum, chemical and petrochemical investment regions. Indian chemical companies are also beginning to globalize. Over the last five years, Indian firms, including Tata Chemicals and Reliance, have invested more than $4.4 billion abroad, with pharmaceuticals, chemicals, and agricultural chemical companies accounting for 52%, 40% and 8% of the investments, respectfully. International acquisitions are also expected for India’s petrochemicals and specialty chemicals sectors.

Source: Chemical Week

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