India's chemical industry has the potential to grow from the current USD 155 billion to USD 346 billion by 2025 with concerted efforts, a report said.
The domestic chemical market accounts for 3.4 per cent of the global market.
More than 80,000 chemicals are being used directly or indirectly in various sectors, said the report prepared by Tata Strategic Management Group. It was released by Fertiliser and Chemical Minister Ananth Kumar at an event in Gujarat.
According to the study, the industry faces critical issues like availability of key feedstock, infrastructure status, scale of operations, access to technology, energy security and ease of doing business.
"These issues have hampered industry growth and it needs government interventions to achieve its true potential," it said.
The report recommended adoption of alternate feedstock, increasing investment in R&D and achieving scale through collaboration for overcoming the challenges.
"Indian chemical industry is on the cusp of a growth trajectory. This industry should be looked at as a part of Indian economic growth story," Tata Strategic Management Group CEO Modan Saha said in a statement.
He said the chemical industry can play an important role in creating jobs and boosting the country's growth.
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)