Chemical industry is a capital as well as knowledge intensive industry. Global chemical market size was estimated at $3.6 trillion in 2011 and is expected to grow at 4-5% per annum over the next decade to reach ~$5.8 trillion by 2021.
India currently accounts for only 3.3 % of the total chemical market with a market size of ~$ 0.1 trillion in 2011. Indian chemical industry is also a much diversified industry with more than 70,000 commercial products. It accounted for ~13% of the gross value added by the industry segment. It accounted for ~13% of the total India's export. Indian chemical sector is very crucial for the economic development of country.
Specialty chemical industry is a knowledge driven industry. In India it has been growing rapidly at 1.2-1.3x of GDP growth rate (~12%) over the last five years and currently stands at ~$20 Billion. Domestic demand of specialty chemicals is expected to follow an accelerated growth path. This demand is mostly driven by the strong growth outlook for end use industries. This along with increased adoption of specialty chemicals and newer usages can propel the growth further. The Indian Specialty Chemical market is valued at ~$20 billion as of FY12.