'Chemical industry may become $150 bn in size by 2013'

The Indian chemical industry is expected to burgeon into a $150-billion (about Rs 7.04 lakh crore) market by 2013, riding on fast economic growth and strong domestic demand, global consultancy Deloitte said.

"India's chemical industry has a promising future and is expected to see around 9-10 per cent growth annually to become $150 billion market in terms of revenue by 2013," Deloitte Touche Tohmatsu Global Chemical Leader Tim Hanley told PTI.

"The main drivers propelling the growth include the lower cost advantage, quality of talent, increasing and substantial domestic demand, government focus in providing incentives, along with improving infrastructure capabilities," Hanley added.

The current market size of Indian chemical market is around $95 billion, while the US remains the largest with revenue of around $700 billion at present.

Global chemical industry, consisting of petrochemicals, inorganic compounds and speciality products and gases, generated around $3 trillion in sales in 2008.

"India has a great potential as currently the per capita consumption of chemical products is just 1/10th of the world average," he said.

During the period 2004-2008, the Indian chemicals market, with a compounded annual growth rate of 16.7 per cent, was the second fastest growing market after China, according to an earlier Deloitte report.

The industry which boasts of corporate giants like BASF, Dow Chemicals, Dupont among others has faced tough times during the recession and the recovery is comparatively slower in the developed countries like the US and Europe.

In contrast, in Asia the recovery has been quite fast and stronger than their global peers. This strong growth and huge domestic demand is attracting global firms in expanding their presence in the area.

Moreover, India has also got a rich source of talent and skilled people which also makes it attractive for global firms.