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Challenges for India's chemical manufacturer

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  • Published date: December 23, 2020
    • Bagaha, Bihar, India [ Ads Views - 3 ]

There are few traditional challenges and problems unique to the chemical manufacturing industry.

Challenges facing Indian chemical manufacturer

Shortage and shortage of raw materials:

Raw materials required by organic and inorganic chemical industries, even across special chemical industries, are often difficult to obtain and cannot be obtained in the market. In addition to raw materials, treated water is also a basic requirement of the chemical industry. The shortage of water treatment plants has made the situation more and more difficult.

Compared with the Middle East countries, China and other Southeast Asian countries, the prices of major raw materials such as naphtha and natural gas are very high in the Indian market. This event has made the Indian chemical industry lose its competitiveness in the global market.

Easily affordable material imports:

In general, one of the most significant challenges facing Indian chemical manufacturer and supplier is the lack of expertise in importing cheap chemicals.

The Indian government has made various efforts to remove tax and other regulatory barriers that prevent the import of a variety of chemicals into India. This scenario has led to an improvement in the import of a number of chemicals at cheap prices available on the global market.

Due to the transparency blockade, the lack of the necessary reviews to manage quality has led to an increase in the number of recalled products from the market, resulting in considerable problems.

Remote industrial location and inadequate infrastructure:

Along the westernmost coast of India, which extends along Gujarat, a vast area of Indian chemical industry. Market statistics show that the largest consumers of chemicals are in the eastern and southern territories of India.

This situation leads to a sharp rise in logistics and transportation prices, which affects the cost of chemical products. The complexity of the infrastructure, such as the lack of adequate port facilities, poor pipeline connectivity, inadequate electricity supply, abnormal conditions in the railway system and instability in the transportation system, make it difficult for chemical manufacturers to obtain raw materials from suppliers across the country.

Regulatory and compliance issues and high tax rates:

It is often found that tariffs on many raw materials exceed those on ready-made chemical products and supplies. This has caused great damage to the manufacturing sector of India's chemical industry.

The case prevented the import of a series of raw materials because of the high taxes imposed on them. It will only promote the import of similar chemicals and raw materials with more relaxed tax regulations. This will also lead to greater price differences.

These are undoubtedly the biggest challenges facing chemical manufacturer, especially in India.

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