Why entrepreneurs should explore small-scale Chemical Businesses in India

chemical businesses

India is a country that is filled with many industries. One of the industries you can find there is the chemical industry. It is a booming sector that has contributed a lot to the Indian economy. This is why the Indian government pays much attention to it. Similarly, it has been predicted that the sector will rise so much in the next ten years. This prediction has attracted several investors to invest in the chemical sector. Besides, in 2021 alone, the value of the chemical businesses globally has increased by five percent. Hence, the prediction is not far off. Even workers in the chemical businesses like Kaushik Palicha agree with this. Palicha is the managing director of Ram Charan Company Pvt Ltd and two other firms. Palicha has been an active employee in all the companies and led them to become leading firms in the country.

However, some things must be done for this to be achieved. This includes having effective business ideas that will increase the revenue the industry generates. But first, let’s understand the chemical businesses.

Importance of Chemical Businesses in India?

Indian chemical manufacturing companies and chemists have considered establishing chemical production firms on a small scale. India alone has more than 69,000 large and small chemical manufacturing units. But generally, small firms contribute more to the economy than larger firms. This goes to show how important the small-scale chemical industries are to the Indian economy.

Value of the chemical industry in India?

The Indian chemical industry/businesses use up more than 30 percent of what it produces. This value is estimated to rise once the sector grows more. Moreover, the Indian government regards the chemical sector as a vital contributor to the Indian economy. As a result, the government permits foreign investors to directly invest at a hundred percent rate in the industry. Besides, the government no longer regulates many chemical products in India.

Why does the chemical Sector Boom?

The sector booms because nearly all Indian sectors use chemical products as raw materials in one way or the other. Therefore, the importance of chemical products in India cannot be overemphasized. In addition, chemical products are used to make drugs, thermoplastics, synthetic products, and many more. Similarly, the sector is connected to other sectors, such as the engineering sector and the textile industry. Others include durable consumer goods, the automobile industry, and so on.

Is the Chemical business a profitable venture?

According to Kaushik Palicha, when you create a small chemical production company, it has the potential to succeed. Hence, several aspiring business owners want to start a small business, but don’t know what to do. They are searching for profitable ideas that will benefit their business in the long run. These would-be entrepreneurs know that the chemical sector is a lucrative one filled with many business opportunities.

Likewise, it has an extremely large market base internationally and this brings profits to the business owners.

Furthermore, it’s presumed that India is the largest chemical manufacturing country in Asia. While it’s the sixth-largest chemical manufacturing country globally. Additionally, the chemical sector contributes about seven percent to India’s GDP.

Ways chemical entrepreneurs can make their businesses successful

  • Invest in equipment that is in good working conditions so that their workers won’t work with faulty equipment.
  • Firms should use digital work operators to increase work efficiency.
  • Chemical businesses should integrate digital tools to access other supply chain alternatives.
  • Also, they should make it their priority to leverage digital tools to facilitate their work.

The market value of the Indian chemical industry

In 2020, petrochemical industries produced millions of chemicals. While essential chemical manufacturers manufactured thousands of chemicals. Industry analysts have revealed that the chemical industry contributes about seven percent to India’s economy. It’s expected that in the next three years, this sector will be worth over 303 billion US dollars. Likewise, it has been predicted that this sector will increase the Indian economy by contributing 300 billion dollars. But before then, there will be an annual nine percent increase in the demand for chemicals.

The Indian government’s initiatives

The Indian government has stipulated that importers must BIS certify the chemicals before bringing them into India. This is to ensure that importers are not importing bad and cheap chemicals. And because the government knows that the industry will contribute more to the economy, it allocated some funds to it. To be precise, for the 2021/2022 budget, the government set aside almost $33 million for both petrochemicals and chemicals.

The government did this to encourage the manufacture of chemicals in India. This will also increase the exportation of these chemicals to other countries.

The Future of the Indian Chemical Sector

There’s a trade dispute between Europe, the US, and China, and China’s supply channel has been disrupted. Consequently, other countries will look to India to supply them with the chemicals they need. This is advantageous to the chemical sector in India. To encourage more export opportunities, the Indian government has reduced taxes on chemical exportation as well as other fiscal incentives.


Kaushik Palicha concluded that things are looking good for the chemical industry in India. Therefore, entrepreneurs and would-be businessmen should establish small-scale chemical businesses in India. The benefits of doing this are endless. They will make profits, contribute to the economy, and create job opportunities. Besides, the government might try to implement a scheme that will benefit chemical manufacturers.