Annual Report 2006-07

Progress in Chemical and Petrochemical : An Overview

Chemical Industryan oldest industries in India, plays a crucial role in meeting the needs of
common man as well as contributes significantly towards the industrial and economic
growth of the nation. In the production of chemicals, Indian Chemical Industry
ranks 12th by volume in the world and contributes to about 3% of Indias
G.D.P. The chemical industry includesbasic chemicals, fertilizers, paints
gases, pharmaceuticals, petrochemical etc. has wide-scope for
significant contribution in the respective fields.
The chemical industry, that
includes basically chemicals and its
products, fertilizers, paints, gas and
medicinals products, plays an impor-
tant role in our total economic deve-
lopment. It is probably the largest
diversified amongst all industrial
sectors, wherein more than 70,000
commercial products are included.
The chemical sector has its share of
around 176% in production of manu-
facturing sector; 13-14% in total
export and 8-9% share in total import
of the country. During the last 5
years, the export of chemicals has
remained more compared to its
import. Its contribution is around 3%
in total GDP (Gross Domestic
Products). Based on the Annual
Report 2006-07 of the Department of
Chemical and Petrochemical (Mini-
stry of Chemicals and Fertilizers,
Govt. of India) following main
achievements have been obtained :
A Brief Resume to Depart-
ment of Chemicals and Petro-
chemicals
The Department of chemicals and
petrochemicals was under the
Ministry of Industry till December
1, 1989 and later on, it was brought
under the Ministry of Petroleum
and Chemicals from December 2,
1989. Subsequently on July 5, 1991,
the Department of Chemicals and
Petro-chemicals was brought under
the Ministry of Chemicals and Ferti-
lizers.
The Department has three functio-
nal divisions viz. chemicals, petro-
chemicals and drugs.
Pharmaceutical (attached office-
National Pharmaceutical Pricing
matter) deals with respective
subject matters.
Department follows the insecticides
Act, 1968 (46 of 1968).
Dr. O. P. Rajput, D.Sc.
Belgium, Spain, South Africa,
Major Highlights Bangladesh, Malaysia and
Production Trends of Chemicals Singapore.
(i) The IIP (Industrial Production (ii) The production of selected major
Index) collection is done by the chemicals remained during 2005-
06, as listed below
Central Statistical Organiza-
tion (CSO) for accelerated-watch Selected Major Chemicals
of growth in production. Infact, it Production
is a sub-group of basic chemicals (2005-06)
and chemical products manufac-
CARG (%)
turing in IIP. This sub-group Production
Sector (2005-06 over
consists of chemicals, petro- (000 mt)
2004-05)
chemical medicines, fertilizers, Inorganic
paints, gas, cosmetics etc., having Chemicals 544 709
its 14% weightage in general IIP. Organic
Chemicals 1,510 251
(ii) In the first three years of 10th Pesticides 82 1277
plan period, the annual rate of
increase for basic chemicals and (iii) Statewise share in production of
its products was noted 69% in basic chemicals Major basic
chemicals include alkali, organic/
general IIP and 88% in manufac-
inorganic chemicals, major pesti-
turing, whereas in the first 6 cides and colour products.
months of the current year (2006-
During 2005-06, the maximum
07), these figures of growth rate share, i.e., 53% remained of
were 106% in IIP and as high as Gujarat in major basic chemicals
115% in manufacturing. it being lowest (4%) in Punjab.
This is shown in fig. 1 as
External Trade in Chemical
Industry 2005-06
(i) Upto the end of 90s decade, the
trade balance in chemicals i.e.,
basic chemicals, petrochemicals
and medicines used to remain in
general, negative but after 2001,
it showed increasing trend.
(ii) During 2005-06, the export of
chemicals remained Rs. 61,551
crore, compared to Rs. 26,846 Gujarat 53%
crore of 2001-02.
Maharashtra 9%
Chemical Sector
(i) Chemical fertilizers and pest- U. P. 6%
icides played an important role Tamil Nadu 6%
in Green Revolution in agri-
culture in the decades of 1960 M. P. 5%
and 1970, respectively. During
the last 5 years, Indian agro- Punjab 4%
chemicals have shown a tremen- Others 17%
dous increase in export. The
major export markets are in USA, Fig. 1. States share in production of
England, France, Netherlands, major chemicals

PD/August/2007/270 Discipline is wisdom and vice-versa.