Chemicals just 9% of FDI inflows
Pointing out that the share of FDI in chemical sector is just 9% of total FDI inflows despite the fact that 100% FDI is permitted under the automatic route, government has asked the industry to introspect on the factors behind it and suggest the policy initiatives needed to boost the inflows. The chemical industry faces hurdles like delayed environment clearances and roll back of tax incentive for research and development (R&D). A Development Council and Advisory Forum for the chemical and petrochemical sector has already been set up to address these issues. Govt. has appealed to the industry to develop new technologies that meet the ‘zero defect’ in quality and ‘zero effect’ on environment conditions so that India can emerge as a major hub in this sector that currently makes only 3% of the global chemical industry of $5 trillion.