Union minister for chemicals and fertilisers Sadananda Gowda has said that the chemicals and fertilisers sector has the potential to contribute over $300 billion to Gross domestic products (GDP) over the next five years when the economy is slated to scale the $5-trillion-mount. He also said that the sector, which currently contributes nearly 7.76 percent of manufacturing now, has the potential to reach 20-25 percent in the next five years.
Assuring the industry of all the necessary support, Gowda urged the stakeholders need to work hard to realize its full potential and said certainly this is not an impossible target. He also said “though I am satisfied at the present growth rate, I believe we can grow faster on the back of the right policies.” He stated that with per capita income steadily increasing, the mid income population presents a huge market. He also expects the chemical industry to grow at 9 percent annually over the next five years.
The minister further said that the government is committed to provide a predictable and market-friendly policy framework to enable companies to take investment decisions and pointed to the enabling reforms such as GST, relaxed FDI norms, labour reforms and bankruptcy laws. He noted that these initiatives have made the country one of the most attractive investment destinations leading to an inflow of $280 billion foreign capital during the past five years alone. He added that the government has already approved setting up of four petroleum, chemicals and petrochemical investment regions in Gujarat, Andhra Pradesh, Odisha and Tamil Nadu. Upon completion, he said these regions will be home to around Rs 8 lakh crore investments, and are likely to generate over 4 million jobs.
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