Chemical industry is the most important Foreign Exchange earner with major value additions through out the value chain. The value is added using knowledge, energy and capital. Chemical industry is an important constituent of the Indian economy having approx. US $ 28 billion turnover which is approx. 7% of India's GDP.

In terms of volume, it is 12th largest in the world and 3rd largest in Asia. Within India, it constitutes about 15% of manufacturing capacity and 20% of the excise revenue to the Government of India. Chemical industry has weightage of about 13% in the index of industrial production. The global chemical industry is valued at about US $ 1.7 trillion. Of this, India's chemical sector accounts for just 2%.

On the domestic front, with the reduction in tariffs, Indian chemical companies with strong systems and organized operations have benefited in the liberal environment. Globally, the easing of GATT regulations by 2005 will mean free trade and greater opportunities. Companies with competitive advantages, like having competence in the areas of high value-added chemicals, conforming with international quality standards, have translated this as a growth opportunity to establish a dominant presence in both international and domestic markets.