Chemicals Sector Expansion: Huge Potential, Says Govt Official

New Delhi, Nov 2 (PTI) Chemicals and Petrochemicals Secretary Nivedita Shukla Verma on Thursday said there is a huge potential for expansion in the chemicals sector to meet local as well as export demand and asked the industry to be competitive and cost effective.

Addressing a conference organised by Indian Chemical Council (ICC), she also asked the manufacturers to adopt the latest sustainable technologies available globally.

Verma said the chemicals industry plays a pivotal role in the economic development of the country as it provides necessary input material for various manufacturing sectors.

The government is making all out efforts to promote manufacturing capabilities in all the sectors.

"Our department is actively engaged in promotion of the chemicals industry, and enhancing the ease of doing business wherever required," she said.

Verma noted that the Indian chemicals sector holds immense potential for expansion.

"With its natural advantages, India is an attractive place for investment," she said, and highlighted that FDI in the chemicals sector grew 90 per cent in 2021-22.

"We also aspire to double our exports in the next 10 years.

"As we strive to do so, the world is increasingly becoming conscious of the sustainable management of resources," Verma said.

Further, she said it is important for the industry to identify sustainable and innovative technologies.

The segments like agro chemicals, dyes and pigments, and speciality chemicals need to be strengthened with emphasis on adopting sustainable development approach.

"During the pandemic, we witnessed major disruptions in the supply chains. There is also an increase in unrest in other parts of the world and the global supply chains have been shifting," she pointed out.

In this scenario, the secretary said, "India needs to be not only Aatmanirbhar (self-reliant) but also be ready to seize this opportunity to supply to the world."

For this, she said there is a need to achieve competitiveness and cost effectiveness by innovating as well as acquiring and adopting the newest technologies available in the world.

However, Verma said the advantage of economies of scale and being competitive in cost would work in India's favour only if it is coupled with clean technology and sustainable practices.

"If we fail to embrace clean technology, the world will not hesitate in turning it into a disadvantage for us," the secretary cautioned.

According to senior officials of the department, India exports chemicals worth Rs 3.75 lakh crore annually while imports are worth around Rs 5.5 lakh crore.