I am happy to launch Dun and Bradstreet (D&B) India's publication 'Indian Chemical Industry' that highlights the current status and future prospects of India's chemical industry. D&B's global footprint and market reach will ensure that the publication draws the attention of global industry leaders and policy makers towards the Indian chemical industry that is poised for a quantum leap.

The rapid growth of the Indian economy has garnered interest across the globe, and India has emerged as a favourable investment destination in the last few years. India has been one of the fastest growing economies during FY09, despite witnessing a moderation in growth due to the ripple effects of the global financial crisis. In FY09, the country's GDP is estimated to have grown by 6.7% as against a growth of 9.01% in the previous year. While the economic conditions have witnessed some improvement in the last few months, the GDP growth is expected to remain at a modest level during FY10 given the adverse impact of deficient monsoon on the agriculture sector.

Increasing imports and tariff and non-tariff barriers in export markets are the two major challenges faced by the industry. In the wake of increasing production costs, a few firms resort to imports whenever it is economical instead of producing chemicals domestically. India is endowed with skilled labour that is required for the chemical industry, however, availability and volatility in raw material prices is a major challenge.

As the per capita consumption of chemicals is low in India, there is huge potential for growth. However, following the ongoing global slowdown, international prices of chemicals have dropped considerably and have consequently pushed up imports into the country - which could result in a decrease in domestic production. Nonetheless, the outlook for the sector remains bright, and the growing Indian economy is likely to ensure growth in demand for the sector.

David J. Emery
President Asia Pacific & Senior Vice President of the Corporation
Dun & Bradstreet