CRISIL SME Tracker: Chinese slump a godsend for SMEs in chemicals industry

In fiscal 2020, CRISIL Research expects domestic demand for specialty chemicals to remain robust, driven by key end-user industries

CRISIL Research expects India’s specialty chemicals industry — including dyes and pigments, and agrochemicals — to log robust growth this fiscal year as the strong tailwind from China continues. 

This augurs well particularly for small and medium enterprises (SMEs), which have a strong presence in this export-oriented industry. These players are clustered around Gujarat, Maharashtra and the Delhi-NCR region, with Gujarat alone housing over 400 chemical units.

China’s specialty chemicals market has seen a downturn in recent years due to various factors, the most prominent being the introduction of stringent environmental norms, which have led to the shutdown of several