Indian chemicals industry to grow at 15 per cent annually: AJV Prasad

MUMBAI: Indian chemicals industry, which accounts for 2.5 per cent of overall GDP, is expected to grow at 15 per cent per annum over the next few years, a government official said today.

"The chemicals industry accounts for 15.95 per cent of India's manufacturing and 2.51 per cent of its overall GDP. However, its impact is much broader.

"The industry already makes a major contribution to what's made in India and is expected to grow at 15 per cent per annum over the next few years," Department of Chemicals and Petrochemicals Joint Secretary AJV Prasad said at a CII event.

The country's chemical industry, including fertilisers and petrochemicals, is currently estimated at $ 144 billion, which is about 4 per cent of the global market of $ 3.6 trillion.

The growth of the industry depends on research and development and for this companies need to increase their spend to 3-5 per cent from the current level of 1-2 per cent, he added.

Prasad said the government is working on the national chemical policy and will be coming up with the document soon.