ABSTRACT
In a growing economy, the demand for chemicals is directly proportional to the level of economic activity because the chemicals industry is a key enabler for other industries. With a large number of products (both final and intermediates) and production processes, the chemicals industry is, perhaps more than other industries, characterized by the presence of a multitude of different global value chains (GVCs) (OECD 2013a). The chemical industry can be divided into a number of sub-sectors with different classification systems defining the broad sub-sectors differently (UNEP 2013). This chapter is on India’s participation in the global reactive dyes industry. India holds about a 40% share of world production in this segment and has recorded a double-digit growth rate in the past few years. In India, concerted efforts are being put in by the industry and academia to improve the position and competitiveness of the chemicals sector internationally, but focused, consistent work is still needed. Second, research expenditure, which is at low levels (1–2%) currently, should be increased; investment needs to be focused towards product development. With a number of strengths over its competitors, the industry can capitalize its position on the global map.
