The chemical industry is one of the oldest industries in the country, which in turn, is one of the largest producers of chemicals worldwide. The industry comprises a significant part of the country’s total exports and also contributes to the national ex-chequer by way of taxes and levies. The chemical industry is, however, highly fragmented and consists of mostly small-scale as well as a few large-scale units. The entire industry can be categorised under units producing basic chemicals, specialty chemicals, and agricultural chemicals. The industry produces a wide range of materials, including plastics, petro-chemicals, toiletries and cosmetics. However, the Indian chemical industry suffers from a variety of problems which impede its growth to a large extent. The high cost of raw materials is a major issue facing the industry at present, as it uses crude oil or natural gas to manufacture chemicals. The industry is also dominated by the unorganised sector, which results in low total installed capacity. Production of spurious chemicals is another important issue the industry has to deal with. Lastly, the industry has to comply with stringent environmental and occupational safety norms, all of which lead to a capital-intensive scenario. Hide this