Solving feedstock puzzle key to gain global competitiveness for Indian specialty chemicals industry

 
Policies should focus on ensuring availability of raw materials (imported or domestically produced) in India to encourage specialty chemical companies to manufacture and develop products in the country. For example, the anchor units at each of the planned PCPIRs (Petroleum, Chemicals and Petrochemical Investment Regions) should be mandated to allocate at least a part of the feedstock to third parties for conversion to value-added chemicals.
 
While India is constrained with regard to petro-based feedstock, companies can focus on renewable resources which are abundantly available in the country to make specialty chemicals. For example, India is one of the leading producers of castor oil and guar gum, and both these products have widespread application in specialty chemicals industry. Similarly, coal-based feedstock can also be explored. Competitive production of specialty chemicals through green processes will present not just local opportunities, but also open up international market.

 
With China’s attractiveness getting diminished somewhat due to rising labour costs and slow growth rate, global companies are looking for diversification in their supply chain. This gives India a window of opportunity to emerge as a reliable alternative, provided the government plays its card well. 
 
On the part of industry, sustainability should be centre to any development activity. So the industry has to play a role of sustainable partner in the long-term development story of India as the country marches ahead on the economic growth path.