The chemical industry is becoming miserable.


- Antenna - Vivek Mehta

- The export money made by the chemical industry was trapped in European countries including Brazil, so the economic situation was dire

Since Gujarat's chemical industry has been running at barely 20 to 25 percent capacity for the last six to eight months, a situation has arisen that a number of units associated with the industry have to downsize. Secondly, since China has imposed 20 to 80 percent anti-dumping duty on chemicals exported from India, India's exports have come to a standstill. Thirdly, billions of rupees of the chemical industry are trapped by preventing China from releasing consignments of goods sent to China. Fourthly, therefore chemical units in Gujarat with a capacity of 1000 tonnes are also almost closed now. Gujarat has approximately 7000 to 8000 chemical units. Located in Chhatral, Kadi, Naroda, Odhav, Vatwa, Nandesari, Padra, Ankleshwar Dahej, Vapi, Sarigam, Khambhat. Now they are doing business only on old income. If this situation does not change in six months, many of these units will not be in a position to repay their loan money.

Chemicals are used extensively in India's textile industry. As the textile industry is also running soft at present, the demand of the textile sector has reduced. China used to import pigment green from India and pigment blue from China. Suddenly China has started its 1000 ton plant. Dumping duty of 20 to 80 percent has been imposed on the consignment of pigments exported from Gujarat. The Chinese importers are talking about releasing the consignment only after paying the duty to the importers. Apart from pigments, anti-dumping duty has also been imposed on other chemicals. The manufacturing cost of H-Acid, which is considered as the most important raw material for manufacturing dyes in the chemical industry, is Rs. 500, no one is ready to take the same H-acid at the price of 350 today. In order to save the chemical industry, the government has to bring a scheme for the chemical industry similar to the scheme of Production Link Incentive brought for active pharmaceutical ingredients. The government should form a corporation. GIDC, GPCB, GUVNL, Water Department should be represented in it. The government should conduct market research and decide how much to produce which chemical. If there are such restrictions, it can be monitored that many people do not produce too much of the same product. Also, the government can guide the chemical industry by researching what can be done to reduce the dependency on China.

To counter China's tendency to dismantle India's chemical industry and to realize the Prime Minister's slogan of a self-reliant India, special zones should be set up for products that are in high demand in the export market. But the officials are becoming reluctant to implement the Prime Minister's plan. A special zone should be created for products that have a high export demand. They should be allowed to mass produce. Also the approval process for new chemical units should be expedited. Until that is done, it is difficult to break the strength of China's chemical industry. Government of India plans to develop the chemical industry, but officials put many hurdles in its implementation. Single window is talked about in Gujarat, but this single window has multiple doors. So the loss of industries does not decrease. The condition of Indian chemical industry does not seem to improve until special zones are planned for mass production. The chemical industry will be put in dire straits any time depending on China.


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