India's Chemical Exports to Hit USD 31 Billion: CHEMEXCIL

New Delhi, Nov 10 (PTI) The export target of USD 31 billion for 2024-25 will be achieved, as there is a healthy demand for 'made in India' chemicals in countries like Brazil, the US, Japan and Saudi Arabia, CHEMEXCIL Director General Raghuveer Kini said.

The Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL) is set by the commerce ministry to promote exports of these goods.

Kini said that the total exports of chemicals during April-September rose by 4.57 per cent to USD 14.1 billion.

"So far, we are registering good growth, and we are confident of achieving the USD 31 billion target this fiscal. Last year, it was around USD 30 billion," he added.

During the second half of this year, the exports will grow at a faster pace, he noted.

"Last year, because of drought in Brazil, which is the key market for us, exports were down. But this year, the situation is good, and we expect high growth," Kini said.

India exports these goods worth about USD one billion annually to the South American nation.

The director general said that the council is holding awareness programmes for exporters about the preparedness of the European Union's carbon tax and quality control orders.

"The EU's carbon tax is a reality, and we have to be prepared for that. Exporters should not be caught unaware. We are explaining the paperwork required to deal with this tax," he said.

The EU's Carbon Border Adjustment Mechanism or CBAM is its unilateral measure, which India is opposing strongly. CBAM is a kind of import duty that will apply to energy-intensive goods imported into the European Union.

It has decided to impose a carbon tax from January 1, 2026, on seven carbon-intensive sectors, including steel, cement, chemicals, and fertiliser.

Kini said there has been a rising demand for chemicals globally by end-user industries like pharmaceuticals, agriculture, and manufacturing.

"Indian chemicals have gained popularity in overseas markets due to their improved quality and adherence to international standards such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and other regulations," he said.

He suggested that poor infrastructure around major ports like Nhava Sheva and Mundra causes delays in shipments as there is a need to expand road networks, improve maintenance, and address traffic congestion to facilitate smoother transport of goods.

"Issues in payments and settlements under the rupee-ruble trade mechanism due to sanctions on designated banks like Sberbank are affecting trade with Russia. Our suggestion is to increase the number of authorised banks in India and Russia to facilitate the transactions," he said.