How India’s Chemical Industry is Using Innovation, AI, and Sustainability to Compete with China

The Indian Chemical Council (ICC) recently hosted the 18th Annual India Chemical Industry Outlook Conference and Exhibition in Mumbai. Themed “Engineering the Future: Reinventing the India Chemicals Sector for Enhanced Resilience,” the event brought together policymakers, industry leaders, and investors.

India’s chemical industry, valued at $220 billion, aims to exceed $1 trillion by 2040, positioning itself as a global leader in the sector.

During the event, a whitepaper by McKinsey & Company titled “Building Resilience for Global Leadership: The Path Forward for India’s Chemicals Industry” was introduced. This report outlines the potential growth and resilience of India’s chemical sector and suggests strategies for companies to flourish.

In his keynote speech, Dr. Kartik Bharat Ram, the President of ICC and Joint Managing Director of SRF Ltd., highlighted how the conference has become a vital gathering for shaping the future of the industry. He noted the increasing local consumption, global supply chain shifts, and the competitive cost structure as factors that promote growth. He emphasized the importance of government backing and technological progress in this journey.

Dr. Ram also celebrated ICC’s achievement in receiving the prestigious 2024 OPCW Hague Award for its dedication to chemical safety and security and underscored the need to establish India as a chemical powerhouse.

Nivedita Shukla Verma, Secretary of the Department of Chemicals & Petrochemicals, addressed attendees via video. She stressed the conference’s theme is crucial as India navigates a changing geopolitical landscape and aspires for Viksit Bharat (Developed India) by 2047. Verma announced new investments in research and development, including five new Centres of Excellence to connect industries with research institutions to promote innovation.

She also pointed out the need for policies that support renewable resources and cleaner production methods that safeguard both the environment and public health.

Deepankar Aron, Joint Secretary in the Department of Chemicals & Petrochemicals, also spoke, focusing on the need for rapid economic growth to achieve the vision of Viksit Bharat 2047, targeting a $26 trillion economy and a per capita income over $14,000. He highlighted initiatives like Atmanirbhar Bharat (Self-Reliant India) and Make in India, which aim to bolster manufacturing, attract foreign direct investment, and weave India into global supply chains.

Aron pointed out that chemical exports constitute 7% of India’s total merchandise exports, which was valued at $45 billion last year, showcasing the sector’s significance in India’s economic landscape.

Marco Mensink, Director General of the European Chemical Industry Council, discussed how geopolitical changes present new opportunities for India’s chemical industry.

The conference focused on growth, market expansion, and the roles of artificial intelligence, technological innovation, and sustainability in the chemical sector. Discussions included digital transformation, AI integration, and innovations aimed at achieving net-zero emissions, such as carbon capture and sustainable production practices.

With a global shift towards climate-friendly production, India is stepping up as a leader in eco-friendly specialty chemicals. Investments in advanced technologies, including blockchain for supply chains and AI for quality control, are shaping the industry’s future competitiveness.

The 18th ICC Conference serves as an essential forum for promoting AI adoption, sustainable practices, and innovation, reinforcing the importance of the chemical sector in India’s economic and environmental pathway.

The conference kicked off with welcoming remarks from Kamal P. Nanavaty, Chairman of the Conference and Exhibition Expert Committee. Ramya Bharathram, Vice President of ICC, concluded the event with a vote of thanks, honoring all participants and contributors.