The Future of Chemicals Export Import: Embracing Digitalization and Sustainability
The Indian chemicals industry is among the largest in the world in terms of both sales and imports. It stands at $180 billion as of 2020, and is projected to reach $304 billion during 2025. The country produces a wide range of chemicals from bulk chemicals to petrochemicals, agrochemicals, polymers, fertilizers, specialty chemicals and even pharmaceuticals. Seventy percent of this production is consumed domestically while the remaining 30% finds its way into exports. Bulk chemicals constitute 25 percent of the market share whilst specialty chemicals, petrochemicals & agrochemicals each have 21%, 15% & 19% respectively and biotech & pharmaceuticals (including active pharmaceutical ingredients) together make up 20%.
India's chemical industry provides employment for millions as well as raw materials for many industries ensuring economic development in all sectors nationwide. Companies are continuously researching new products that will be cost competitive yet We are rewarded with sustainable long-term growth across all regions — further increasing the potential of India’s chemical sector over other global competitors. A favorable regulatory environment coupled with technological advancements has enabled a conducive atmosphere for businesses to thrive making it an ideal avenue for investors too.
India Export Trend
India's rise to being one of the top chemical exporting countries in the world is a result of dedicated efforts from both government and trade organizations like CHEMEXCIL, India's Chemical Exports Promotion Council. Since FY23 (until September 2022), exports of major chemicals and petrochemical products have stood at US$ 8.6 billion as a result of subsidies granted by the Department of Commerce & Industry, and B2B exhibitions organized throughout different countries. Through these efforts, small and medium exporters from key states like Gujarat, Maharashtra, Karnataka, Tamil Nadu, and Andhra Pradesh have seen tremendous growth in their industries.
Compared to other nations, India fares better when it comes to navigating through international trade-related issues such as high freight rates or container shortages. This due mainly to the initiative taken by CHEMEXCIL which provides financial aid in statutory compliance in overseas product registration in order to sustain market access worldwide despite any obstacles that may arise. As such, this growth has been made possible with its relentless efforts towards increasing transparency and promoting ethical business practices among its members exporters.
The specialty chemicals segment has seen a huge growth rate of 12 percent, increased mainly due to the rising use of hygiene products, packaged foods, energy drinks and nutraceuticals. These sub-sectors consist of flavors and fragrances, personal care chemicals, nutraceutical ingredients, and surfactants. This leads to many opportunities for U.S companies to export chemicals with applications in agrochemical, seed treatment pharmaceuticals industries while India is looking at importing technologies such as acetic acid, acrylonitrile and lithium-ion battery production.
From the construction industry to automotive services and water treatments industries, there is a potential for great further growth in this segement due to increasing demand internationally. With regards to U.S exporters there are immense chances in areas such as adjuvants; enzymes or plant based extracts useful for household care; probiotic and keratin actives; conditioning actives; and glutathione for personal care products. All these factors represent promising development opportunities that should not go unnoticed by businesses belonging in this sector of the market
Chemicals Export / Import Regulation
The Export-Import or Prior Informed Consent (PIC) Regulation (EU) No 649/2012 is a law that places specific obligations on exporters of hazardous chemicals to non-EU countries. The law seeks to help countries monitor and control the export and import of these potentially dangerous substances, as well as enabling them to refuse and impose restrictions upon their acceptance. The purpose is to ensure safety over these toxic materials. Under the regulation, exporters must obtain prior informed consent from those importing hazardous chemicals, meaning they require permission from the government of the country they are transporting the materials into. They must also provide appropriate safety information for those using the materials within that country.
The regulation outlines requirements related to notification, labeling and packaging, emergency response measures and end use obligations for these potentially hazardous substances. All exporters must comply with this legal standard in order to protect human health and environment, as well as meet certain economic interests of international trade along with other involved states’ laws and regulations. For further information on exporting and importing regulations under PIC Regulation (EU) No 649/2012 please visit our homepage for details.
The chemicals export import industry plays a vital role in the global economy, providing essential goods and services to various sectors. The industry faces numerous challenges, including complex regulations, environmental concerns, and changing global trends. However, it also presents significant opportunities for growth and innovation.