CHEMEXCIL crosses USD 30.31 bn of chemical exports in FY23
CHEMEXCIL crosses USD 30.31 bn of chemical exports in FY23
CHEMEXCIL to focus on exports to emerging markets, the concept of renewable chemicals named as “Green Chemicals” as well as Bio based Specialty chemicals and Renewable chemicals Smt. Anupriya Patel, Union Minister of State for Commerce and Industry graces 47th Export Awards of CHEMEXCIL
National, 16th April 2023: Smt. Anupriya Patel, Hon’ble Union Minister of State for Commerce and Industry, Govt. of India, graced the 47th Export Awards ceremony of CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council set up by the Union Ministry of Commerce & Industry, Government of India).
CHEMEXCIL crossed USD 30 billion of exports in organic & inorganic chemical sector for the FY23 of which USD 27 billion of exports were achieved from April 2022 to February 2023. CHEMEXCIL will focus on the emerging markets concept of renewable chemicals named as “Green Chemicals” as well as Bio based Specialty chemicals and Renewable chemicals.
CHEMEXCIL Chairman Mr. S. G. Mokashi announced this major development on the occasion of the Council in the presence of the Chief Guest Smt. Anupriya Patel and Guest of Honour, Padma Bhushan Professor M. M. Sharma; Vice Chairman Shri Abhay Udeshi; Past Chairman, Shri Ajay Kadakia; Dr. Satish Wagh, Chemical Panel Chairman; Shri S.G. Bharadi, Executive Director; Esteemed Council of Administration (COA) members, esteemed award winners, Captain of the Trade and Industries.
Smt Anupriya Patel, Union Minister of State for Commerce & Industry, Govt of India, said, “It is indeed a matter of great pleasure that CHEMEXCIL is organising the 47th Export Awards function to felicitate the outstanding exporters of Basic Chemicals, Dyes & Dye Intermediates, Cosmetics & Toiletries, Castor Oil and Speciality Chemicals, etc. CHEMEXCIL plays an important role of interfacing with the industry and the Government of India in the formulation of export-oriented policies and to create a favourable and export friendly environment to augment exports of chemicals from India. There are challenges ahead in this fast-changing world and with continued policy support from the Government, the Council and the enterprising exporting community will definitely sustain and also surpass its enhanced momentum in export growth. On this occasion, she conveyed her warmest greetings and felicitations to all the award winners for outstanding export performance and best wishes to CHEMEXCIL for the success of its members.”
On 31st March 2023, Hon’ble Commerce & Industry Minister Shri Piyush Goyal and Hon’ble Minister of State for Commerce and Industry, Smt. Anupriya Patel, had released the new Foreign Trade Policy 2023. The new FTP is dynamic and kept open ended to make amendments to facilitate the need of the industry.
Hon’ble Commerce & Industry Minister Shri Piyush Goyal said in a message, “Under the dynamic leadership of Hon’ble Prime Minister Shri Narendra Modi, India has emerged as a reputed and reliable manufacturer and an international supplier of dyes & dye intermediates, basic chemicals, agrochemicals, cosmetics and toiletries, castor oils, etc. Chemicals and petrochemicals sector has the potential to transform India into a global manufacturing hub. This is in line with the Hon’ble Prime Minister’s Shri Narendra Modi’s vision of Make in India for the World. I am sure that CHEMEXCIL will continue to act as a catalyst in fulfilling the Government’s commitment to encourage exports and surpass the export growth achieved in the past. I urge exporters to utilise the emerging business opportunities by scaling-up their production and diversifying their product range in tune with the requirements of the domestic and global market. I congratulate all the award winners for their determined efforts in promoting our overall exports and wish CHEMEXCIL all the success in its future endeavours.”
Mr. S. G. Mokashi, Chairman, CHEMEXCIL, said, “CHEMEXCIL welcomed the new Foreign Trade Policy which is designed to facilitate greater trade, boost manufacturing, promote exports, further enable “ease of doing business” and also work towards making Indian Rupee a global currency, adding further impetus to India’s emergence as the global trading hub.”
Mr. Mokashi added, “The policy has also initiated to create an institutional mechanism at the State and District level to promote identified products and services, which will further help in giving boost to the MSMEs and creation of employment across all sectors of economy.”
India became as the preferred manufacturing destination for companies across the world. Supply chain disruption during pandemic period, has really opened the doors for Indian supplier to the world market,” said Mr. Mokashi.
“We need to maintain effluent load and protect environment. Therefore, we look for the sustainable products. Sustainability is the need of the hour. To minimize the time for obtaining permission from Pollution Control Board, we have taken up the issue with Hon’ble Minister of Environment Forest and Climate Change Shri Bhupendra Yadav ji, & under his direction State Control Board has made favorable amendments, said Mr. Mokashi.
“Green Growth is one of the priority sectors in this year’s Union Budget Green Fuel, Green Energy, is one of important component. I would like to add that Bio based Specialty chemicals and Renewable chemicals are future of India with excellent growth prospects. The depleting fossil fuels and increasing greenhouse gas emissions are influencing to increase the need of Bio Material. In view of protection of Environment and increasing demand, the concept of renewable chemicals named as “Green Chemicals” are gaining the market share in Food processing, Pharmaceuticals, Textiles, Construction and coating sectors. Chemexcil members are also working on these directions,” said Mr. Mokashi.
To upgrade the process technology and to improve the productivity of chemicals, CHEMEXCIL intends to plug this gap through the development centers like UICT, IIT, NCL like institutes. Joint research programme will also help to improve the technology.
CHEMEXCIL is constantly discussing the issues related to trade with various concerned departments for the benefit of member exporters in order to achieve the goal of exports. As regards Production Linked Incentives Scheme, CHEMEXCIL requested department in various meeting to include chemicals under PLI scheme to boost local manufacturing under ATMANIRBHAR BHARAT PROGRAMME.
CHEMEXCIL has conducted Buyer Seller meet at Korea, Japan and Taiwan with the help of Indian Consulate and received overwhelming response. Recently Govt of India has signed a Trade agreement with Australia, Ind-Aus ECTA and with UAE called India -UAE CEPA. Chemical sector will be benefiting with these new agreements. Chemexcil is the first Council to take the trade delegates and organise the joint programme with Australian Business community with the help of Indian Embassy after India-Australia ECTA.
Doyens of the chemical industry such as Mr Ramu S. Deora, Proprietor, G. Amphray Laboratories; Mr Bipinchandra R. Patel, Chairman, Ami Chemicals; Mrs Paru M. Jaykrishna, Chairperson, Asahi Songwon Colors Limited received the lifetime achievement award. CEOs of leading chemical exporters such as UPL, Godrej Industries, Ami Organics, Godavari Biorefineries, Hemani, Aries Group, Galaxy Surfactants, GSP Crop Science, Gharda Chemicals, Heranba, Jayant Agro-Organics, Ihsedu Agrochem, Amee Castor & Derivatives, AKIK Dye Chem, Neeru Menthol, Parijat, APANIMEX, NeeliKon, GumPro Drilling Fluids, KolorJet Chemicals, Krishi Rasayan Exports, Amar Impex, Pon Pure Chemicals Group, SonaRome, Eternia Fine Chemicals, Multi Organics, etc., graced the occasion.
CHEMEXCIL is one of the premier export Promotion Council, majorly categorized as specialty chemical group. In this Sector, Dye and Dyes Intermediates, Organic, Inorganic, Agrochemical, Cosmetics & Toiletries plays a major contribution to the Indian exports.
Indian chemical industry
The size of Indian Chemical industry is approx. USD 163 billion & is projected to reach USD 304 billion in 2025. It is an integral component of Indian economy, contributing around 6.7% of India’s GDP. The Chemical industry in India is highly diversified, covering more than 80,000 commercial products.
India is the 6th Largest producer of Chemicals in the world and 3rd in Asia after Japan. China has largest chemical industries in the world. The Size global chemical industry is USD 4 trillion.
Total production of the major chemicals including petrochemicals is approximate 30+ Million tones in a year in India. Indian ranks 14th in export and 8th in import of chemicals (Excluding pharmaceuticals products).
Indian chemicals contribute 2.8 to 3% of total global chemical industry, Indian chemical industry employs more than 2 million people.
100% FDI is allowed in Indian Chemical Sector by automatic route. Except in case of some critical hazardous chemicals.
India leads in Dyes production and contributes to 16%-18% to world’s dyestuff exports. Indian Dyes are exported to over 90+ countries
India is 4th largest producer of agrochemicals in the world manufacturing more than 50 technical grade pesticides. 13th largest exporter of agrochemicals in the world and 2nd in Asia. India has achieved No. 1 status in production of natural essential oils in global markets
India is the largest producer and exporter of castor oil in the world, is responsible for almost 83.65% of total global exports in this segment.
The bilateral trade relationship between India and overseas countries has grown steadily during the recent years. The exports of Chemicals under the purview of CHEMEXCIL from India to overseas have grown substantially.
New FTP approaches:
From Incentives to Tax Remission
Greater trade facilitation through technology, automation and continuous process re-engineering
Export Promotion through collaboration between exporters, states, Districts.
Focuses on emerging areas like e-commerce exports, developing districts as export hubs, streamlining SCOMET policy, etc.
The Policy rightly emphasized on key elements including of ease of doing business with reduction of transaction cost and e-initiatives.
Reduction of user charges of MSMEs under AA and EPCG, E-certificate of Origin, Paperless filling of export obligation to reduce time and cost of exporter to help them to timely discharges export contract.
The new Policy is way forward to be dynamic and responsive to emerging trade, wider engagement Sector specific targets to achieve the goal of one trillion-dollar merchandise exports and one trillion dollar services exports by 2030.
The State Government is focusing on sector-wise development which will help the state to provide all required facilities to various industries to flourish in future.
BRIEF ABOUT CHEMEXCIL
Basic Chemicals, Cosmetics & Dyes Export Promotion Council popularly known as CHEMEXCIL, is set up by the Ministry of Commerce & Industry, Government of India to promote exports of Dyes and Dye Intermediates, Basic Inorganic & Organic Chemicals, including Agrochemicals, cosmetics & Toiletries, Essential Oils, Castor Oil and Speciality Chemicals etc., Presently, CHEMEXCIL has 3096 member exporters spread all over India.
CHEMEXCIL provides a wide spectrum of services to Trade & Industry and acts as a catalyst for growth of India’s Trade for promoting Dyes & Dye Intermediates, Basic Organic and Inorganic Chemicals, Soaps, Detergents, Cosmetics, Toiletries and other products like Essential Oils, Castor Oil etc., It has an extensive infrastructure as well as marketing and information facilities that are availed by both exporters and importers.
Many products under the ambit of CHEMEXCIL especially Specialty Chemicals, Dyes & Dye Intermediates, Agro Chemicals, Petrochemicals, Cosmetics & Toiletries as also Castor Oil Contribute significantly to GDP of India.
Specialty Chemicals are those chemicals which are produced at a low volume, but are high priced and usually targeted at a wide variety of markets, ranging from Pharmaceuticals to Construction. The said Chemicals segment in the Indian Chemical Industry is a new emerging sector which brings promises of huge growth.
CHEMEXCIL’s ASSISTANCE TO THE EXPORTER:
Identifying Potential Markets
Highlighting Export Constraints and operational bottlenecks
Provide Publicity and marketing back up.
Disseminate trade enquiries & contacts.
Undertake direct export promotion measures such as organizing trade delegations / buyers seller meet to various countries.
Participating in International Exhibitions, Organize Indian Chemicals & Cosmetics Exhibitions (stand alone show) in Focus Area.
Representing Indian Pavilion in established international shows/exhibitions.
Organize Export Awareness Program & seminars to educate members on new notifications of Customs, Central Excise & DGFT.
To Overseas Buyer
Locates an appropriate supplier
Organizes Reverse Buyer – Seller meets
Provides up to- date market information
Host related services-Hosting foreign delegation
POLICY / TRADE INFO- SUPPORT-Members
Liaison with Government authorities to convey the requirements of chemical industry/ exporters.
Represents issues of member-exporters related to Directorate General of Foreign Trade, Customs/Central Excise, Duty Drawback, Banking, ECGC, etc.
Dissemination of information to member-exporters pertaining to new Exim/ CBIC circulars, Notifications, Anti-Dumping Investigations, TBT/ SPS Measures etc.
Co-ordinates with Indian embassies overseas in connection with trade complaint.
As a Capacity Building Initiative, Open house meetings conducts seminars/workshops.
Issues visa recommendations, Certificate of Origin, letters for renewal of Central Excise Bond etc. to the member exporters.
REACH registration support
Registration, Evaluation and Authorization of Chemicals, known as ‘REACH’ is a new EU regulatory framework of the EU Commission which is aimed at improving the protection of human health and the environment, through the better and earlier identification of the properties of chemical substances. Under this system, all EU producers and importers have to perform a chemical safety assessment of their products and have to provide information to their customers in the supply chain.