year plan of chemical industry in India : A reason to invest
The chemical industry in India had always been critical for economic development of the country. In this blog I would like my fellow reader to have a glimpse of “FIVE YEAR PLAN of Indian chemical industry” which is from 2012-2017. In FY10 the global chemical sales has been valued as $3.4 trillion in which Asia has a mammoth share of 45% in 2009. With Asia’s growing contribution to global chemical industry, India emerges as one of the focus destinations for chemical company throughout the world. Indian chemical industry accounts around 3% of the global chemical industry and according to predictions it might reach 6% to reach 290 billion by 2017. With prime minister’s campaign “Make in India” investors are keen to invest on manufacturing sectors and looking for trusted source for the raw materials. I would like to point out what actually the five year plan is.
Actions to be taken by government:
- Improve infrastructures
Various levers are explored to provide adequate infrastructure to the chemical industry
- PPP model for building necessary infrastructure, especially for ports and roads.
- Availability of finance to improve infrastructural facilitates for SMEs.
- Large scale infrastructure projects, especially those involving multiple states
- Pooling of common infrastructure at existing clusters
Ensure feedstock availability
Encouraging “Customer Cracker” project
Facilitating industry to participate in securing feedstock and mining rights.
Developing strategies for allocation of feedstock to best suited products.
- Provide support for new technologies and establish technology up-gradation fund (TUF)
- Implement rigid plan to strengthen R&D.
- Set-up talent development infrastructure
- Improve image of existing industry
- Consolidate acts into an integrated chemical legislation, simplify regulatory structure and strengthen regulations
- Rationalize taxes and duties
- Develop India’s chemical inventory
Actions to be taken by industry
- Invest locally with scale and size matching global norms and adopt cutting edge technology
- Secure feedstock and technology – pursue international JVs/ alliances / acquisitions
- Become a coveted employer – Attract and retain talent
- Establish a targeted innovation platform, invest more in R&D
- Create a positive, consumer & environment friendly image
- Interact with regulatory/industry bodies