2. Very broadly, chemicals can be classified into polymerisation products, basic chemicals, fine chemicals and pharmaceuticals. Polymerisation products include items of everyday use such as polyethylene sheets, plastic articles, PET containers, etc. Basic chemicals are those that go into production of consumer items like paints dyes, soaps, medicines, toiletries, cosmetics, etc. Besides, there are fine and speciality chemicals which have very specific uses and are essential for increasing industrial production. Pharmaceuticals cover the whole range of medicines and life-saving drugs.

3. Based on the turnover, the broad structure of the Indian chemical industry is as follows:

4. Although traditional medicine, involving the use of naturally occurring herbs and chemicals, has a long history, the development of the Indian chemical industry began in the early part of the twentieth century. Today, it accounts for 14% of the total output of the Indian manufacturing sector, its exports being US $3.5 billion, which represents 10.7% of the country’s exports. A substantial proportion of these exports goes to the USA, Europe and other developed nations, an indication that the high quality of Indian products can compete with the best in the world.

5. As far as basic chemicals are concerned, India produces a large number of both organic and inorganic chemicals. In dyes and fine chemicals, the Indian industry combines traditional knowledge and skills to produce high quality products. This sector of the Indian chemical industry has done exceedingly well and, with an export of US $500 million, India is the 9th largest exporter of dyes and dyestuffs.

6. Chemical fertilisers and pesticides played an important role in the Green Revolution during the 1960s and 1970s. The pesticide industry has continued to develop at a fast pace. It manufactures a wide variety of products including Methyl Parathion, Malathion, Quinalphos, Zinc Phosphide, Methyl Bromide etc. United Phosphorus Ltd., Gharada Chemicals and Excel are some of the Indian companies which have not only developed products indigenously but have also emerged as prominent exporters. India today is the 13^th largest exporter of pesticides and disinfectants in the world.

7. India produces a large number of fine and speciality chemicals which find wide usage as food additives, pigments, polymer additives, anti-oxidants in the rubber industry, etc. Some of the important manufacturers of speciality chemicals include NOCIL, Bayer (India), ICI (India), Hyco Products and Colour Chem.

8. Petrochemicals are derived from the major petroleum feedstocks namely, Naphtha, Gas and Kerosene. These are converted into plastics, synthetic fibres, synthetic rubbers, detergent intermediates and chemicals. The major application areas of plastics are in packaging, pipes, canal lining, furniture, footwear etc., supplementing conventional material such as paper, wood, steel, cement, glass, jute, leather etc. Synthetic fibres, used for making industrial fabrics, etc., supplement natural fibres like cotton, wool, silk, etc. Synthetic rubber is used in tyres, tubes, footwear and other rubber products and supplements natural rubber in these areas.

9. Currently, there are 7 cracker complexes in operation including the one at Haldia in West Bengal. Besides, there are 3 aromatic complexes.

10. The Petrochemical Sector has been growing @ 14-15% annually, the growth rate being twice the growth rate of the GDP. Despite rapid growth in the consumption of petrochemicals in the country, Indian per capita consumption at 3 kgs.has to go a long way before it catches up with the world average of 17 kgs. Similarly, the per capita consumption of synthetic fibre of 1.6 kg is significantly low vis-à-vis the world average of 3.9 kg.

11. The Indian Pharmaceutical industry is one of the most dynamic in the developing world. Today India produces drugs covering a wide range of therapeutic groups with an annual turnover of over US $3.9 billion. Indian pharmaceutical products are exported to various parts of the world and are valued at more than US $1.5 billion presently. Domestic companies have successfully improved processes and yields, while meeting international quality standards.

12. Over the last few years, policy initiatives have been directed towards promoting the growth of the pharmaceutical industry and in helping it achieve a broad base in terms of the range of products and technologies needed to produce them from as basic a stage as possible. The result has been very encouraging. Today there are about 250 large units and an increasing number of these are getting international approval including that of FDA, USA. These units produce almost the complete range of formulations required in the country and about 350 bulk drugs, constituting about 70 per cent of the indigenous requirement of bulk drugs.

13. India has developed a strong research and development base. Besides national Institutes like National Chemical Laboratory, Pune and the National Institute of Pharmaceutical Education & Research, Mohali, there are a large number of research laboratories in the private sector. Several companies in the pharmaceuticals sector, have state-of-the-art in-house research facilities that have been successful in producing new molecules. The Government of India is keen on promoting pharmaceutical research in the country. A 1.50 billion rupee fund has been created to give a boost to the pharmaceutical research in the country.

14. India is emerging as a strong country as far as the Knowledge Based Industries are concerned. While India’s strengths in the IT sector are well-known and acknowledged all over the world, pharmaceuticals, biotechnology and speciality chemicals are the new areas in which the country is coming up strongly.

15. With over 65 WHO certified and 15 FDA approved production facilities and large presence of multinational and Indian companies, India has emerged as one of the largest producers of pharmaceuticals globally with around 8.5% of global production in this sector. Ranbaxy Laboratories, Dr. Reddy’s Labs., Lupin, Orchid and Sun Pharma are names of Indian companies that are well-known in other countries. India is today the 17^th largest exporter of pharmaceuticals in the world.

16. The presence of a large number of research oriented scientists and a large number of well-qualified doctors, makes India an ideal place for clinical trials by the world’s major pharmaceutical companies.

17. India, with a population of 1 billion, has a rich genetic pool and the large family structure provides ideal conditions for studying genetic pattern of diseases. Given the strengths in IT and telecommunication sectors, India is well-placed for sophisticated research and analysis processes in the field of biotechnology including genomic scanning using micro-satellite markers, high throughput DNA sequence analysis, Robotic Technology for handling of micro-quality sample for genome research etc.

18. The development of Advanced Materials is also an emerging area. These materials include organic polymers, ceramics, inorganic materials, biomaterials, nanomaterials and intelligent materials. These are used widely in catalysis, medicine, aerospace, photonics, imaging, etc. Already, a number of multi-nationals including Dow Chemicals, Du Pont, GE and Bayer are getting their R&D work done in the Indian Laboratories.

19. The Indian Chemical industry is at the threshold of rapid growth and the Government of India is committed to providing an atmosphere conducive for this. An international Exhibition and Seminar on the Chemical, Petrochemical and Pharmaceutical sector is being organised at Pragati Maidan in New Delhi in October 2000 to showcase the strengths of the Indian industry and to provide it with a platform for interaction with the top companies in the world. This event is planned to be organised every two years.