 "Incentivise R&D for growth of specialty chemicals sector: Dr Deepak Parikh")
The Indian specialty chemical industry is estimated to grow almost threefold its current size by the year 2020. This will be driven by demand from sectors like automotive, healthcare, agriculture, plastics, construction and FMCG. The country has a large population with low per-capita consumption of chemicals and a strong GDP growth outlook; this indicates the robust potential of India’s specialty chemical demand.
The country is already acquiring a prominent position as a manufacturing base for multinational chemical majors. Several mature products in the sector have already been commoditised or are at risk of the same. Specialty chemical manufacturers need to strengthen their focus on niche applications and product innovation in order to protect their margins.
To give a further boost to India’s specialty chemical industry, the Union Budget for 2017 needs to factor three important recommendations:
- Lowering bilateral trade barriers between India and other Asian nations like South Korea, Japan, Taiwan, and others
- Incentivising research & development activities to encourage launch of innovative products and thus place India as a leader in innovation
- Offering credits to chemical manufacturers that demonstrate exemplary corporate citizenship by exhibiting sustainability and lower carbon footprint
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Dr Deepak Parikh is the region head (India) of Clariant
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