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CHEMICALS

VIPUL ARORA SHREY VIRMANI

Overview
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Chemical sector of India is one of the oldest industrial sectors in India. It has contributed significantly towards the phenomenal growth of Indian industry and economy. The chemical sector of India directly or indirectly acts as a supplier of many of the commodities of daily use. It is extremely scientific in its approach and facilitates the provision of many of the important chemicals which are the basic materials for end-products like paper, leather, paint, varnish, textile, and so on. The chemical sector in India stands as the keystone of the agrarian and industrial development which provides support for other industries. It is estimated to be worth around US$ 35 billion, which is almost 3% of the country's gross domestic product. The investment in chemical sector of India is around US$ 60 billion. It generates employment of about 1 million.

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http://www.economywatch.com/world-industries/chemical/india.html

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The chemical sector of India provides around 13-14% of total exports and its total imports are about 8-9%. It is ranked 12th globally and 3rd in Asia. The per capita consumption of chemical industry products in India is .01% of the global average One of the fastest growing sectors of Indian economy. Chemical Industry in India is fragmented and dispersed - multi product and multi faceted. Chemicals sold directly to large customers and through distribution channels. Distribution channels mostly consist of stockiest and dealers spread all over India addressing small segments and retail market.

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http://www.economywatch.com/world-industries/chemical/india.html

The sector is involved in production of paints.In this sector the growth rate is near about 9% and the chemicals produced in this sector are mainly used in alkalis. detergents and glass. The sector has a growth rate of near about 12%. Depending on the product categories Chemical Industry in India is divided in following sectors: Inorganic Chemicals . http://www. Fertilizers and other Agro-chemical products.The Chemical Industry in India is based on the idea of Diversification. inks. fertilizers. Organic Chemicals . Units concentrated mostly in the Western India Pesticides.html . Specialty and Fine Chemicals like Dyes and Paints.1 Billion Dollar industry. dyes.This sector of the Chemical Industry in India account for almost 2. polymers and a lot of other chemical products.com/world-industries/chemical/india.economywatch.5% of the global market. It possesses an impressive domestic market growth rate of 10%. Covers a wide range of chemicals.This sector is characterized by high level of fragmentation.

Export contribution 2008 .

com/india-petroleum-industry/chemical-sector-in-india.Domestic Industry http://business.html .mapsofindia.

Baroda .Major production centre's : ` ` ` ` ` ` ` Mumbai Bulsar Pune New Delhi Hyderabad Ahmedabad.

STATE WISE SHARE IN PRODUCTION OF SELECTED MAJOR CHEMICALS Source: Ministry of Commerce and Industry .

.Trend in Exports ` ` Exports of chemicals decreased by 1 percent Organic/inorganic chemicals showed volume increase.

18  Major export to USA http://commerce.Inorganic chemicals  Total export of $823.   % Growth of 2.81 Major export to China Organic Chemicals  Total export of $7.71million in year 2007-08 was recorded.nic.  % Growth of 25.170.in/eidb/ecom.81 million in year 2007-08 was recorded.asp .

asp .nic.23 million in year 2007-08 was recorded.323.Fertilizers  Total export of $25.   % Growth of 31.34 Major Export to Germany http://commerce.19 Major export to Nepal `  Dyes and Paints Total export of $1.   % Growth of 138.in/eidb/ecom.92 million in year 2007-08 was recorded.

ink and polymer .` ` ` ` Inorganic chemicals : Detergents and glass Organic chemicals : Explosives and drugs Plastic and petrochemicals : PVC and plastic products Dyes and Dyes pigments : Paints.

SRI LANKA DSR .in/eidb/ecom.BANGLADESH P y y y y y http://commerce.51% of total export of the commodity. Total export of the commodity in year 2007-08 was recorded as USD 7.Major Export Destination for Inorganic Chemicals y Major export destinations of inorganic chemicals are CHINA P RP and USA.ROMANIA .INDONESIA .nic.06% of total export of inorganic chemicals Second major destination of inorganic chemicals is USA. inorganic chemicals is also exported to IRAN .asp .89 mn CHINAP RP accounts for 19. Apart from CHINAP RP and USA .U ARAB EMTS . Total export to USA is 6.

29 Values in USD million \Year 2003-2004 1.538 9. OR RADI.03 2004-2005 2.40 3.23 43.45 1.063.36 343. Country: CHINA P RP S.83 %Growth Total export of commodity 194.77 43.Commodity: 28 INORGANIC CHEMICALS.6 19.992.86 25.40 -60.89 2.41 4.359.94 5.59 4.905.978.42 362.163.89 47.862. ELEM.88 2007-2008 1.36 35.No.35 2005-2006 3.nic. ORGANIC OR INORGANIC COMPOUNDS OF PRECIOUS METALS.42 %Growth %Share of country Total export to country 23.02 85.02 18.47 42.10 19.523.asp .in/eidb/ecomxcnt.89 -8.25 118.55 16.82 4.3 331.41 2006-2007 3.671.06 4.741. OF RARE-EARTH METALS.24 http://commerce.357.6 287.296. 1 2 3 4 5 6 7 8 %Growth %Share of commodity 3.875.84 2.752.491.17 1. OR OF ISOTOPES.

063.16 %Growth %Share of country Total export to country 4.4 mn 22.47 8.89 -8. OF RARE-EARTH METALS.51 343.10 6.536.94 362.36 3.9 mn 2004-2005 2.12 0.671.55 2005-2006 3.01 331.163.22 8. ELEM.806.26 http://commerce.47 4 2006-2007 3.15 0.76 2007-2008 4.682.51 5..279.854.29 Values in USD million \Year 2003-2004 1.94 5.32 0. ORGANIC OR INORGANIC COMPOUNDS OF PRECIOUS METALS.26 7.04 mn 34. OR RADI.89 47.6 6.80 mn 25.21 0.90 17.18 11.2 -2.862.Commodity: 28 INORGANIC CHEMICALS.77 4.asp .808.338.185.875.nic. 1 2 3 4 5 6 7 8 %Growth %Share of commodity 0.84 mn 25.848.10 19.16 24.26 %Growth Total export of commodity 194. Country: U S A S.157.No. OR OF ISOTOPES.9 287.in/eidb/ecomxcnt.

nic. KOREA RP . Total export to CHINAP RP is 8.86% of total export of organic chemicals Second major destination of inorganic chemicals is CHINAP RP. NETHERLAND.asp .87 mn USA accounts for 10. Total export of the commodity in year 2007-08 was recorded worth USD 6. SINGAPORE ` ` ` ` ‡ http://commerce. SPAIN . organic chemicals is also exported to PAKISTAN IR.in/eidb/ecom. Apart from USA and CHINAP RP . INDONESIA .72% of total export of the commodity.Major Export Destination for Organic Chemicals ` Major export destinations of organic chemicals is USA. GERMANY .

No.594.338.86 8.63 2007-2008 69.854.297.87 %Growth %Share of country Total export to country 11.536.157.806.32 3.76 32.01 20.17 11.53 http://commerce.12 3.83 24.76 5.33 Values in USD million \Year 2003-2004 33.in/eidb/ecomxcnt.Commodity: 29 ORGANIC CHEMICALS Country: U S A S.90 -2.nic.42 11.848.25 10.886.21 3.978.37 25.67 11.05 23.26 7.25 2006-2007 67. 1 2 3 4 5 6 7 8 %Growth %Share of commodity 2.38 10.asp .279.10 6.6 2004-2005 38.19 11.22 8.86 2.8 15.66 %Growth Total export of commodity 1.1 39.459.7 3.67 2005-2006 54.15 2.808.682.8 2.964.47 17.185.

59 6.45 2005-2006 45.42 11.19 9.752.89 1.9 7.01 2.978.55 16.in/eidb/ecomxcnt.150.89 85.02 25.18 2.741.491.594.Commodity: 29 ORGANIC CHEMICALS Country: CHINA P RP S. 1 2 3 4 5 6 7 8 %Growth %Share of commodity 7.40 18.41 6.5 %Growth %Share of country Total export to country 7.47 25.67 9.402.63 2004-2005 36.48 2.905.992.15 15.741.82 6.15 32.1 59.38 10.01 20.964.978.523.37 Values in USD million \Year 2003-2004 22.297.2 25.72 4.886.04 3.359.85 1.296.357.25 2007-2008 55.25 8.No.asp .13 2.81 2006-2007 52.459.17 5.78 http://commerce.626.32 2.84 %Growth Total export of commodity 1.nic.

U ARAB EMTS . fertilizers is also MALAYSIA .CHINA P RP .Major Export Destination for Fertilizers ` Major export destination of fertilizers is NEPAL Total export of the commodity in year 2007-08 was recorded worth USD 2.49% of total export of fertilizers Second major destination of fertilizers is BANGLADESH RP.SRI LANKA DSR . Apart from NEPAL and BANGLADESH RP.KUWAIT ` ` ` .U K .31 mn NEPAL accounts for 18.ITALY .asp .in/eidb/ecom. ` http://commerce.nic.OMAN .

738.49 606.32 0.25 2005-2006 1.77 18.331.23 10.070.13 2006-2007 1.30 Values in USD million \Year 2003-2004 2 bn 2004-2005 1.18 2007-2008 4.437.98 14. Country: NEPAL S.28 333.2 10.8 -13.09 307.76 %Growth Total export of commodity 3.928.32 111.578. 1 2 3 4 5 6 7 8 %Growth %Share of commodity 0.72 60.32 %Growth %Share of country Total export to country 29.93 8.68 -2.11 4.35 0.08 44.60 76.55 5.71 420.in/eidb/ecomxcnt.79 15.32 http://commerce.Commodity: 31 FERTILISERS.903.asp .19 -14 9.81 14.03 0.No.14 5.nic.56 0.54 380.138.895.348.28 149.07 -42.

BRAZIL . Dyes and Pigments. Total export of the commodity in year 2007-08 was recorded worth USD 11. is GERMANY.NETHERLAND . Apart from NEPAL and BANGLADESH RP.83 mn NEPAL accounts for 11.TURKEY .Major Export Destination for Dyes and Pigments.KOREA RP ` ` ` ` . is also ITALY .U K. Is USA.BELGIUM . Major export destination of Dyes and Pigments. ` .CHINA P RP . Second major destination of Dyes and Pigments.46% of total export of Dyes and Pigments.

800.96 http://commerce. TANNINS AND THEIR DERI.67 8.159.39 2.059.53 1.71 13.asp .11 16.723. 1 2 3 4 5 6 7 8 %Growth %Share of commodity 1.44 2005-2006 60.nic.83 8.in/eidb/ecomxcnt.701.126.875. PIGMENTS AND OTHER COLOURING MATTER.261. INKS. PUTTY AND OTHER MASTICS.971.42 2.7 2007-2008 135.2 46.03 1.169.9 311.23 %Growth Total export of commodity 311.No.52 7.17 456.01 7.72 Values in USD million \Year 2003-2004 50 2004-2005 51.6 1.78 532.587.743. DYES.92 %Growth %Share of country Total export to country 7. PAINTS AND VER.29 374.17 2.892.39 21.4 2.04 20.77 11.232.2 14.3 17.269.84 1.24 2006-2007 88.6 53.Commodity: 32 TANNING OR DYEING EXTRACTS.37 -0. Country: GERMANY S.34 1.46 1.82 25.

85 bn .95 bn. India¶s total export in year 2006-07 was $10.Export for India from last years India¶s total export in year 2005-06 was $5.

HS Commodity Level Code TRADE 2001-02 2002-03 2003-04 2004-05 2005-06 2006-07 INORGANIC CHEMICALS * 2 DIGIT.GROUP .28 Export Import 1259 5730 1946 5579 1949 5916 2871 8130 3431 10446 3629 11473 ORGANIC CHEMICALS 2 DIGIT -29 Export 7624 10190 12975 16269 21504 25950 Import 8795 10695 14363 18785 22776 27330 DYEING. TANNING AND COLOURING MATTER 2 DIGIT -32 Export Import 2436 1138 2943 1344 3112 1617 3111 1878 3750 2245 4562 2720 PESTICIDES 4 DIGIT 3808 - Export 1356 1487 1746 2096 2791 2877 Import 362 287 501 712 754 806 .WISE EXPORT & IMPORT OF CHEMICALS Group ITC .

Soaps. Cosmetics. Dyes. popularly known as CHEMEXCIL was established in the year 1963 with it's headquarters at Mumbai.Chemexcil ` Basic Chemicals. with the objective of making concerted efforts to promote exports of Basic Organic and Inorganic Chemicals. Castor Oil etc. Pharmaceuticals & Cosmetics Export Promotion Council. Toiletries and other products like Essential Oils. . Detergents. Pesticides.

5% to 3%. Incentive under the scheme has been enhanced from 2.Provisions in India·s Foreign Trade Policy ` ` ` ` Expansion of FMS ± Focus Market Scheme (FMS) has been expanded by adding 26 new markets. Duty exemption and remission schemes-The Government has been taking various steps for augmenting the export. out of which 16 are in Latin America and 10 in Asia-Oceania. Expansion of FPS ² Incentive under the scheme has been enhanced from 1.25% to 2% Duty free import of specialized inputs /chemicals and flavoring oils is allowed to the extent of 1% of FOB value of preceding financial year·s export. Some of the important measures taken by the Government are as follows:- .

)On most building blocks & feedstock the duty is 5% (ethylene.e. toluene. .)The peak rate of Customs Duty on most Chemicals is 7. natural borates is 5% 3.The scheme is available for exporters of basic chemicals.)On basic raw materials like sulphur. xylene ) EPCG scheme Zero duty EPCG scheme .` ` ` ` ` ` Customs Duty 1. benzene.5% 2. propylene. rock phosphate.A ¶zero duty· EPCG scheme has been introduced in FTP 2009-14 for a limited period i. upto 31-3-2011.

CIS region. Australia and New Zealand. Financial assistance with travel grant is available to exporters traveling to focus areas. Trade Fairs and Buyer Seller meets abroad or in India and 2. Export promotions seminars. viz.. ASEAN countries. Latin America. . Africa.MARKETING DEVELOPMENT ASSISTANCE SCHEME ` Financial assistance is provided for export promotion activities implemented by EPCs and Trade Promotion Organizations. 3. ` Assistance is provided for participation in: 1.

nist. where regulation includes specific quality systems such as good laboratory practice (GLP).htm .Quality Standards ` ` ` ISO STANDARDS FOR CHEMICALS Inorganic chemicals: ISO 1552:1976(liquid chlorine) & ISO 3425:1975( sulphur) Organic chemicals: ISO 1995:1981( Aromatic hydrocarbons) & ISO 5280:1979( Xylene) The chemical industry is one of the most regulated activity sectors. good clinical practice (GCP) and good manufacture practice (GMP). ` http://www.gov/public_affairs/chemical.

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