India's chemical demand likely to jump to $1,000 billion by 2040

The sector is projected to grow at 11-12% during 2021-27 and 7-10% during 2027-40 — tripling its global market share by 2040

India is likely to account for more than a fifth of incremental global consumption for chemicals over the next two decades as domestic demand is projected to rise to $1,000 billion by 2040, McKinsey said in a report.

In the report titled 'India: The next chemicals manufacturing hub', McKinsey said the country's chemical industry has been a global outperformer in demand growth and shareholder wealth creation over the last decade.

"It now stands poised to play an increasingly dominant role across both consumption and manufacturing in the global arena," it said.

The sector is projected to grow at 11-12% during 2021-27 and 7-10% during 2027-40 — tripling its global market share by 2040.

"India is expected to account for more than 20% of incremental global consumption for chemicals over the next two decades. Domestic consumption and demand is expected to rise from $170-180 billion in 2021 to $850-1000 billion by 2040," it said.

Chemicals find wide usage in human lives — from detergents to clothing and fragrances, from insecticides to paints, and telecommunication to music and media.

McKinsey said the growing demand for bio-friendly products globally could benefit India, as it is among the leading producers of many chemicals that are used in such products.