Indian Chemical Policy

BACKGROUND

  • The chemical industry is an indispensable and integral constituent of the growing Indian  The wide range of chemical products play a vital role in catalyzing not only the economy of the country, but also making the life-style of human beings comfortable and sophisticated. Apart from the above, chemicals are essentially contributing in several other fields, viz., health, agriculture, environment, forest, communications, pharmaceutical, transport, power, textile, infrastructure, housing, defense, etc.
  • The chemical Industry, 3rd largest producer in India and 6th by output in the world, is critical to the economic development of any country and has played an important role in India's ongoing metamorphosis from an agrarian economy to an industrialized This industry occupies a pivotalposition in meeting basic needs & improving quality of life and is one of the most diversified sectors covering thousands of commercial products. The chemical industry is the mainstay of the industrial & agricultural development of the country & provides building blocks for several downstream industries, such as textile, paper, paint, soap, detergent, pharmaceutical, varnish, etc.
  • The Indian Chemical Industry has the major advantage of being extremely diverse in the range of productsthat it manufactures and going forward, the industry can build on this base
  • The chemical industry in India is a key constituent of Indian economy, accounting for 11 of the GDP.
  • The Indian chemical industry comprises small, medium and large-scale units, and presently, there are about 70,000 chemical manufacturing units. Indian chemicals industry comprises a wide range of chemical products including pharmaceuticals (29%), petrochemicals (21%), specialty chemicals (19%), fertilizers (17%), agrochemicals (3%) and other base chemicals constituting -11 % of the total Indian chemicals
  • Indian chemical industry exports dyes, pesticides and specialty chemicals which form about 3% share in the global market and contributes significantly to foreign exchange
  • India accounts for approximately 16 % of the world production of dyestuff and dye intermediates, particularly   for reactive acids and direct
  • Indiais 3rd largest consumer of polymers and 3rd largest producer of


The Department of chemicals & petrochemicals (DCPC) has undertaken formulation of a National Chemical Policy in line with hon’ble Prime Ministers vision of Make in India with zero defect in quality and Zero effect on environment.
The National Chemical Policy of India is in final stages and as a part of this, the Government is planning to launch Indian Bureau of Corrosion Control and setting up National Chemical Centre that could prevent losses from corrosion and act as a repository information Centre for the chemical industry.

VISIONS and TARGETS

The Vision for the Indian Chemical Industry is : “To facilitate the accelerated growth and development of the chemical industry to meet local and global requirements, in an environment friendly manner, with focus on innovation, sustainability and green technologies, so as to enable it to become a globally competitive major player."

AIMS and OBJECTIVES :

The principal policy objectives are to create an enabling framework to meet the growing demands in all areas to foster innovation, catalyze manufacturing, addressing environmental concerns and adopting green technologies, encourage HRD and R&D through academic institutions & industry that not only cater to the growing domestic needs but also take advantage of global export opportunities as a logical expansion of the industry. The chemical Industry, 3rd largest producer in India and 6th by output in the world, is critical to the economic development of any country and has played an important role in our country's ongoing metamorphosis from an agrarian economy to an industrialized economy.

Chemical industry Imperatives :

India envisages the future growth of its chemical industry by successfully utilizing its inherent strengths while effectively addressing the key challenges. The following challenges need to be addressed to achieve the aspirational growth target defined in the Vision
  • .Infrastructure
  • Feedstock
  • R& D Technology
  • Sustainability
  • Regulations
There is strong Government support towards R and D In 2016, Department of Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, Govt. of India and Federation of Indian Chambers of Commerce and Industry (FICCI) launched, “India-Chem 2016” to develop Indian Chemical and Petrochemical Industry The Ministry of Environment, Forest & Climate change has formed the national coordination committee to prepare a national action plan for chemicals for India.

GOVERNING ACTS AND RULES

At present, there are multiple Act/Rules in India governing the chemicals industry that fall under the purview of different Ministries/Departments. An illustrative list for reference is given below: FUTURE FOCUS AREAS : Specialty chemicals as a focus area :

In view of the importance and bright prospects of specialty chemicals, including their export potential, this segment deserves special attention and incentives in the policy. Special focus needs to be provided to the specialty chemicals industry by the following measures:
1. By setting up capacities in PCPIRs through demarcating special zones to aggregate feedstock demand.
2. Encouraging the anchor tenant of PCPIRs to set up an Ethylene Oxide (EO) plant with stringent manufacturing standards to meet the demand of this important feedstock for specialty chemicals.
3. Setting up of chemical clusters and consolidation of Acts/Rules would be another initiative in this direction.
4. Considering the sun-rise nature of the sector, adequate R&D support needs to be provided.
5. Specialty chemicals market has expanded at a CAGR of about 12% over FY 07-11. This figure is expected to rise by 9.43% from FY14 to reach USD90 billion by FY23.
6. The Indian middle class household is expected to grow from 31 million in 2008 to 148 million by 2030, leading to a huge demand for specialty chemicals in automotive, water treatment and construction
7. India’s construction chemical sector consists of a variety of products ranging from admixtures to sealants. Admixtures form the largest segment with a 42% share, followed by 18% share of adhesives and sealants
8. The construction chemical market stood at USD573.2 million in 2014, which grew to USD649375 million in 2015. By 2019, the construction chemical sector is set to touch USD1146.4 million.

Polymers Chemicals

  • India is currently the world’s 3rd largest consumer of polymers behind China and the US. India’s  polymerconsumption is 2 million tones which constitutes 3% of the global consumption.
  • The sector is expected to grow at a higher rate due to growth in plastic demand resulting from increasedusage in packaging, construction and automotive
  • Polymerproduction in India is around 9 million tones and imports stands at 8 million tons.

Agrochemicals

  • Indiais the 3rd largest producer of agrochemicals, globally and ranks 4th in terms of production of crop protection chemicals. The market for crop protection chemicals in India is expected to reach to USD7.5 billion by FY9 and register exports of about 50% of value of Indian crop protection
The 7 states including Andhra Pradesh (AP), Maharashtra, Punjab, Madhya Pradesh (MP) and Chhattisgarh, Gujarat, Tamil Nadu and Haryana account for over 70% usage of crop protection chemicals in India. Andhra Pradesh (AP) is the leading consumer of agrochemicals with a market share of 24%.

SUPPORTING INNOVATION

  • Carryingout technology and product development
  • Evolvingand periodically updating the national program for technology/product
  • Acting as a nodal agency to monitor and ensure the implementation of various recommendations made for promoting indigenous R&D, IPR creation, Confidential Business Information (CBI) protectionand manufacturing and deployment of products and
  • Collaborating with the Ministry of Science & Technology, and specifically with Department of Science & Technology (DST), Department of Scientific & Industrial Research (DSIR) and leading national laboratories
  • A centralized R&D Technology Park (R&DTP) should be created to provide "plug in" facilities for MSMEs so that they can have access to the world class R&D facility to develop and enhance their customerofferings
  • All the expertise R&D, including laboratory research, pilot facility and scale-up expertise would be madeavailable in this R&D TP to facilitate world class innovation at a competitive cost for
  • Formulating the road map for innovation 2022
  • Anyother area relevant to the chemical sector.

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