India Development News & Foreign Investment Opportunities

Gadkari calls for chemical import substitution

India Chem seeks investors


India Chem seeks investors




Minister of Road Transport and Highways Development, Nitin Gadkari has urged the Chemicals and Petrochemicals industry to look at ways to promote import substitution.

Inaugurating India Chem 2018 on 4 Oct 2018 in Mumbai, Gadkari said: “Global investors in the chemical and petrochemical sector have a huge opportunity to invest in India. In the wake of rising crude oil prices, India needs to reduce its dependence on imports and increase exports.

“India is presently ahead in innovation, entrepreneurship, technology, research and development. There is a huge potential in the Indian petrochemical sector, but we need import substitutes, pollution-free, cost-effective and indigenous ways to go ahead”.

The Government had taken a decision to increase production of ethanol, which is important for the country.

“As this is the time for India to find solutions for import substitutes, the chemical industry must work towards finding the solutions to curb imports of crude oil at rising prices,” said Gadkari.

The Minister also announced that the government plans to start a pilot project in Mumbai, Navi Mumbai, Pune and Guwahati to run electric buses on Methanol derived from coal.

He also emphasised to find a policy to encourage the industry to reduce imports and urged the Indian chemical industry to see, if agriculture material can be used to make chemicals, which will be a game changer for the country.

“There are opportunities in sectors such as specialty chemicals, pharma, biotech,” added P. Raghavendra Rao, Secretary, Department of Chemicals and Petrochemicals.

Chemicals and petrochemicals production have grown 6.2% in the last seven years and is projected to grow by 9.3% by FY 2025.

Among investors, SABIC is exploring to further ties with the sector, added its Vice Chairman and CEO Yousef Al-Benyan. SABIC has set up a R&D centre in Bangalore.

In 2017, the Indian chemical industry was valued at US$163 billion, and contributed 3.4% to the global chemical industry estimated at US$4.7 trillion.

Over 300 chemical and petrochemical companies are attending the three-day India Chem 2018 organised by the Federation of Indian Chambers of Commerce and Industry along with the Department of Chemicals & Petrochemicals.

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