April 27, 2020
Minister Gowda suggested the PSUs to explore possibilities to attract foreign investment into India’s export of chemicals and petrochemicals
Based on this, Hindustan Insecticides Ltd reached out to Indian embassies and missions in China, Japan, and South Korea for partnership
The Government is urging Indian chemical companies to partner with foreign agrochemical manufacturers keen on investing in India
India has achieved growth in merchandise exports, reaching US$265 billion in 2020, with a strong chemicals/petrochemicals component
Union Minister of Chemicals and Fertilizers, Shri DV Sadananda Gowda, has encouraged companies and PSUs from the Indian chemical sector to explore joint ventures with international enterprises looking for investment opportunities in India. According to a Ministry of Chemicals and Fertilizers release on April 27, Minister Gowda has suggested that PSUs explore possibilities to leverage the current lockdown situation and attract foreign investment into India’s export of chemicals and petrochemicals.
Following this, community and public sector unit entity, Hindustan Insecticides Ltd (HIL), has reached out to Indian embassies and missions in China, Japan, and South Korea to partner with the agrochemical manufacturers looking to invest in India. HIL currently supplies essential chemicals to the health and agriculture sectors as well as foreign partners such as those in Peru. Besides, HIL has recorded total sales of US$367,000 through its supply of insecticides, agrochemicals, and fertilizers to members of the Southern African Development Community (SADC).
Indian Chemical companies are well-positioned to help partners from the global healthcare, agricultural and other sectors, especially during this time of the COVID-19 pandemic.
In 2018, the Ministry of Commerce and Industry had led a meeting of export industry officials and stakeholders to discuss a strategy for doubling the country’s exports by 2025. By tackling quality standard and logistical challenges, the Government achieved high year-on-year growth in merchandise exports, reaching US$265 billion in 2020, aided by India’s increasing command in global value chains. Besides aiding economic growth, rising exports have helped in generating jobs and bolstering the nation’s foreign exchange reserves.
The Union Cabinet had also sought to focus on 12 identified Champion Services Sectors, including chemicals and petrochemicals, to set up India as a service hub beyond the nation’s expertise in IT-ITeS services. Additionally, the Export-Import Bank of India (EXIM Bank) has conducted market research and a draft export strategy is being prepared. The Government is also approaching export activities specific to different territories such as NAFTA, Europe, CIS, China, ASEAN as well as developing economies in Africa.