Question

Analyse the role of chemical industries in the Indian economy.

Answer 1

1) With the current size of around 108 billion dollars, the Indian chemical Industry accounts for approximately 7 percent of Indian GDP.

2) The chemicals sector accounts for about 14 % in overall index of Industrial production.

3) The share of the Industry in the national exports is around 11 percent.

4) In terms of volume, India is the third largest producer of chemicals in Asia after China and Japan.

5) The government aims to create 100 million additional jobs in the manufacturing sector by 2025. Hence, investments in manufacturing in the chemical sector are absolutely essential to ensure growth of the Indian Chemical Industry.

6) The Indian Chemical industry accounts for approximately 3% in the global share and hence a lot need to be done in this regard. with respect to policy changes and greater tax relaxations. The Industry has a huge potential to drive the Indian economy at a fast pace and create huge employment to harness India's demographic dividend.