Chemical sector surges in India |
With Indian exports in the IT and the pharma sector facing slowdown in demand, India`s chemicals industry has been creating demand and posting strong growth every quarter. The top 10 chemical companies have reported an average 48 per cent growth in earnings for the March quarter and experts believe this trend is likely to continue. Their total revenues crossed over 5 billion dollars in FY19, a 28 percent jump. Analysts expect the overall industry to continue to grow in double digits. Rising Indian consumption, import substitution, and rising share in global exports are the three main reasons for such growth. According to estimates, India`s consumption is 20 percent of the global average, yet 45 percent of the demand is met through imports, which stand at $55 billion. With many Chinese capacities shutting down, large global chemical sourcing chains are forced to look at India as an alternative market.
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