MDA AUG-SEP 2018 FINAL AUG-SEP 2018 DIGITAL | Page 48

Article
CII Underlines Need for an Integrated
Petro-Chemical and Speciality
Chemicals Master Plan
The domestic chemicals industry
has grown dramatically in the past
few decades. Currently contributing
approximately 2% towards the nation’s
gross domestic product (GDP) and
around 16% to the manufacturing
sector, this industry is poised to
continue its growth momentum in the
future as well.
However, disproportionate rise in
imports due to limited availability of
feedstock, unfavorable comparative
48 | August-September 2018 | Global MDA Journal
advantage in terms of duty structure,
difficult access to infrastructure and
technology etc. are hindering the
sector’s true potential. 2020 as compared to a deficit of 641 KT
in 2015 and ethylene deficit is expected
to increase to 3,602 KT by 2020 as
compared to deficit of 2,856 KT in 2015.
As highlighted in the Confederation
of Indian Industry (CII) Report on
Chemicals, India’s chemical sector is
significantly falling short on its basic
building block, with the feedstock
deficit expected to increase further.
As per the report, Propylene deficit
is expected to increase to 2,073 KT by Despite
the
country’s
sizeable
production base and significant
demand expectations, India remains
a net importer of chemicals. Exports
of chemicals and chemical products
(excluding pharmaceutical products
and fertilizers) stood at approximately
Rs 1,913 billion while imports were