India’s chemical demand may rise to $1,000 billion by 2040

Chemical sector in India is projected to grow at 11-12% during 2021-27 and 7-10% during 2027-40 — tripling its global market share by 2040. It is also is expected to account for more than 20% of incremental global consumption for chemicals over the next two decades. 

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New Delhi, March 16: India may become a leading consumer and manufacturer of chemicals as domestic demand is projected to rise to $1,000 billion by 2040. On Monday, McKinsey has reported India is likely to account for more than a fifth of incremental global consumption for chemicals over the next two decades.

The global management consulting firm in its report, titled ‘India: The next chemicals manufacturing hub’, said the country’s chemical industry has been a global outperformer in demand growth and shareholder wealth creation over the last decade. “It now stands poised to play an increasingly dominant role across both consumption and manufacturing in the global arena,” it said.

The sector is projected to grow at 11-12 per cent during 2021-27 and 7-10 per cent during 2027-40 – tripling its global market share by 2040. “India is expected to account for more than 20 per cent of incremental global consumption for chemicals over the next two decades. Domestic consumption and demand is expected to rise from $170-180 billion in 2021 to $850-1000 billion by 2040,” it said. Chemicals find wide usage in human lives – from detergents to clothing and fragrances, from insecticides to paints, and telecommunication to music and media.