Size of chemicals and petrochemicals market in India is around $165 billion. It is expected to grow up to $ 300 billion by 2025, Union Minister for Chemicals and Fertilizers D. V. Sadananda Gowda has said.
Addressing a virtual Latin America and Caribbean session on ‘Reimagining Distances’, during LEADS 2020, organised by FICCI on Wednesday, Mr. Gowda said that Indian pharma sector could grow to $ 65 billion by 2024. “We have recently launched schemes for the development of seven mega parks—three bulk drug parks and four medical devices parks across the country. New manufacturers will be eligible for Production Linked Incentive (PLI) Scheme under which they will be eligible for financial incentives on basis of their sales for first 5-6 years,” he added.
To meet the growing demand, India will need five crackers by 2025 and an additional 14 by 2040. These crackers alone will require a cumulative investment of $65 billion. To attract foreign investments, “We are thinking to extend financial incentive based on sales similar to what is being extended in our pharmaceutical sector. We are also tweaking our policies to strengthen our chemical industrial cluster which we call as PCPIRs and plastic parks. Together, these supportive government policies will offer one of the best environments to do business in India as far as chemicals and petrochemical sector is concerned,” Mr. Gowda said.
India is one of the largest manufacturers and exporters of generic medicines across the world. With the supply of HCQ and Azithromycin, one of the medicines under treatment protocol for COVID-19 in emergency cases to more than 120 countries across the world, India has earned the reputation of reliable supplier of medicines.
India is the only country with the largest number of US-FDA compliant pharma plants (more than 262, including APIs) outside of USA with exports $ 20 billion worth of pharma products to various countries, including high standards complying countries like the US and Europe.
It is a good time to invest and set up a manufacturing base in India in the pharma sector. “One can enter the India market through joint ventures also. The advantage is that you can get access to big markets like the domestic Indian market, US, Japan, EU and South East Asia through India as far as pharma sector is concerned,” he stressed.