Which Chemical Is Not Made in India? Surprising Gaps in Domestic Production
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When you think of India’s booming chemical sector, you picture massive factories churning out fertilizers, polymers, and dyes. Yet, there are a handful of chemicals that still arrive fully built‑up from abroad. Knowing which ones are missing can help traders, investors, and policy‑makers spot real opportunities.

What the Indian chemical landscape looks like today

India ranks among the top 10 global chemical producers, with an estimated US$240billion output in 2024. The sector spans basic chemicals, specialty chemicals, and advanced polymers. According to the Indian chemical industry a diversified ecosystem that includes fertilizers, petrochemicals, and fine chemicals, domestic capacity has grown 12% year‑on‑year since 2020.

Despite that growth, the Ministry of Chemicals and Fertilizers reports that about 35% of the chemical import bill still comes from a relatively short list of specialty chemicals that the country does not produce at scale.

Why some chemicals stay off the production line

Three main factors keep certain chemicals out of Indian factories:

  • High‑tech requirements: Some processes demand ultra‑pure environments, specialised reactors, or rare catalysts that are expensive to install.
  • Safety and regulation: Chemicals that are highly corrosive, toxic, or environmentally hazardous often face stricter local permits.
  • Market size: When domestic demand is modest, companies prefer to import rather than build a dedicated plant.

These constraints create a clear import‑dependency niche that savvy entrepreneurs can target.

The standout case - Hydrofluoric acid

Among the import‑dependent list, Hydrofluoric acid a weak‑acid solution of hydrogen fluoride used in etching, petroleum refining, and glass manufacturing is the most striking because it is not produced anywhere in the country.

Why?

  1. Extreme corrosivity: HF attacks glass, steel, and even human tissue, demanding specialised storage tanks made of nickel‑based alloys.
  2. Stringent environmental rules: The Ministry of Chemicals and Fertilizers classifies HF as a ScheduleV hazardous material, adding layers of approval and monitoring.
  3. Limited domestic demand: In 2023, Indian consumption was just under 5,000tonnes, far below the 30,000‑tonne threshold that makes a dedicated plant viable.

As a result, India imports roughly 4,800tonnes of HF each year, spending an estimated US$210million. The bulk comes from China (55%) and the United States (30%).

Illustration of a nickel‑alloy tank storing hydrofluoric acid with a worker in hazmat gear.

Other chemicals that India still imports

Hydrofluoric acid isn’t alone. The table below summarises the top five import‑dependent chemicals in 2023, their primary uses, and the total import value.

Import‑Dependent Chemicals in India (2023)
Chemical Key Applications Domestic Production? Import Volume (tonnes) Import Value (US$million)
Hydrofluoric acid Etching, petroleum refining, glass polishing No 4,800 210
Tetrafluoroethylene (TFE) PTFE (Teflon) production No 1,200 85
Phosgene Isocyanates, pesticides No 900 70
Hydrogen cyanide Adiponitrile, synthetic rubber No 1,050 65
Acetylene (high‑purity) Welding, organic synthesis Limited (small‑scale only) 2,300 55

These chemicals share the same three constraints listed earlier - high‑tech production, safety hurdles, and niche demand.

What the gap means for businesses

If you’re a chemical trader, the import data points to a reliable revenue stream: buying bulk from overseas and distributing domestically. However, for a manufacturing entrepreneur, the gap signals a potential ‘first‑mover’ opportunity.

Key considerations before launching a plant:

  1. Technology sourcing: Partner with equipment OEMs that specialize in corrosion‑resistant reactors (e.g., Alfa Laval for HF‑compatible heat exchangers).
  2. Regulatory roadmap: Secure a Hazardous Waste Management Permission from the Directorate General of Foreign Trade (DGFT) and a Factory Licence under the Make in India scheme.
  3. Supply chain: Ensure a steady feedstock of fluorine‑rich minerals (e.g., fluorite from Rajasthan) and negotiate long‑term crude oil contracts for hydrogen source.
  4. Cost‑benefit analysis: A 20,000‑tonne HF plant costs roughly US$350million, but with a 3‑year payback if the company captures 40% of the current import market.

Even if a full‑scale plant feels too big, a joint‑venture with an overseas producer can reduce capital needs while satisfying local demand.

Concept art of a proposed greenfield chemical plant in India with a blueprint overlay.

How to verify whether a chemical is truly not produced in India

Follow this quick checklist before you announce a ‘new’ product:

  • Consult the Indian Chemical Industry Annual Report (published by the Ministry of Chemicals and Fertilizers).
  • Cross‑check export‑import data on the Indian Trade Portal for the last three years.
  • Search the Chemical Abstracts Service (CAS) database for Indian‑registered manufacturers.
  • Contact the Federation of Indian Chambers of Commerce & Industry (FICCI) chemical committee for sector insights.

If all three sources show zero domestic capacity, you likely have a genuine import‑gap.

Future outlook - will the gap close?

India’s “chemical not manufactured in India” list is expected to shrink as the government pushes green‑field projects under the Make in India initiative. The 2025 budget earmarked US$1.2billion for ‘high‑hazard chemical clusters’ in Gujarat and TamilNadu.

Nevertheless, the economic case for ultra‑niche chemicals like hydrofluoric acid remains tight. Unless domestic demand jumps-perhaps through a new wave of semiconductor fabs-imports will likely dominate for the next decade.

Frequently Asked Questions

Why doesn’t India make hydrofluoric acid?

Hydrofluoric acid requires corrosion‑resistant reactors, strict hazardous‑material permits, and a demand level that currently doesn’t justify the huge capital outlay. These hurdles keep the supply chain fully dependent on imports.

Which other chemicals are not produced in India?

Besides hydrofluoric acid, the most notable import‑dependent chemicals in 2023 were tetrafluoroethylene, phosgene, hydrogen cyanide, and high‑purity acetylene. All share high‑tech or safety constraints.

Is there a business case for setting up a plant for these chemicals?

Yes, but only if you can secure technology partners, meet stringent environmental clearances, and achieve at least 30‑40% market capture. For hydrofluoric acid, a 20,000‑tonne plant could break even in about three years under current import prices.

How can I find reliable import data for chemicals?

The Indian Trade Portal and the Ministry of Commerce’s monthly import‑export bulletin provide detailed customs data. Combining those with CAS registration checks gives a clear picture of domestic versus imported volumes.

What government schemes support new chemical plants?

The ‘Make in India - Chemical Cluster’ program offers capital subsidies, fast‑track clearances, and tax holidays for projects that address import‑dependent chemicals. Check the Ministry of Chemicals and Fertilizers website for eligibility criteria.

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