What the Chemical Industry Makes

How chemicals are inputs to almost every product - from medicines and fertilisers to plastics and paints - and why the industry matters for manufacturing.

The chemical industry makes inputs used in nearly every other industry.

Examples

Fertilisers for farms.
Pharmaceutical ingredients.
Plastics and polymers for packaging and cars.
Paints, dyes and coatings.
Detergents and cosmetics.
Agrochemicals like pesticides.

Intermediate goods

Most chemicals are intermediate goods: sold to other businesses, not consumers.

India’s industry

India is one of the world’s larger chemical producers, around the sixth largest by some estimates.
The sector contributes a significant share of manufacturing output and exports.

Linkages

Strong chemical industries support textiles, pharma, agriculture and autos.

Import dependence

India imports many chemicals and intermediates, especially from China.

Why it matters

Self-reliance in chemicals supports manufacturing resilience.

The painted wall

The paint on a house wall contains pigments, resins and solvents, each made by different chemical companies.

Thinking chemicals are only a niche industry

They're inputs to almost every product.

Key takeaways

Chemicals are inputs to fertilisers, medicines, plastics and more.
Most are intermediate goods.
India is among the world's larger producers.
India imports many chemicals from China.