The Indian chemical & pharmaceutical companies are actively positioning themselves as an alternative to China as the present “corona” pandemic is pushing organizations to reduce dependency on supply-chains emanating from China. In fact, the supply-chain disruptions in the chemical sector started happening in China a few years ago, as China started tightening the environmental regulations resulting in shutting down of various chemical plants & markets witnessing supply disruptions for various bulk & commodity chemicals also resulting in price hikes. China, as the world’s factory for chemicals, had a near monopoly, however, organizations are now realising it is high time to reduce this disproportionate dependency on china supply chains. India’s chemical sector is valued at nearly US$ 175 Billion & speciality chemicals comprises nearly 20% of this market (US$ 30 Billion) or about 3% of the global market. India is the 4th largest Agrochemicals producer in the world & also a leading player in the dyes & colourants sector.

Various other areas of speciality chemicals wherein India has a good manufacturing & supply-chain base include- Textile chemicals, Personal care active ingredients, Construction chemicals, Rubber chemicals, Flavours & Fragrances ingredients, Surfactants & Polymer additives. In the domain of Chemicals & Pharmaceutical sectors, Indian companies are well poised to become a new supply-chain hub for a wide variety of products. Many Indian firms are already expanding their capacities to take on new challenges. In the case of the Pharma sector, we are already witnessing an increase in captive API capacities at a much faster pace & similar is the case across a whole range of speciality chemical sector. In the bulk chemicals arena, India has a strong presence in Chlor-Alkali & derivatives, Alco-chemicals, Alkyl Amines, Organic chemicals, Fertilizers & Petrochemicals. Further, India has a strong demographic dividend with a young working population, & the presence of a large pool of skilled & semi-skilled workers & a strong education system.