NEW DELHI: India’s chemical industry is well-positioned to capitalise on ongoing disruptions in European chemical operations, according to a recent analysis by B&K Securities, as reported by news agency ANI. The report highlights that high operational costs across the EU27 have eroded production efficiency, opening a window for Indian chemical manufacturers to expand their presence in the region. However, the opportunity comes with significantchallenges, including intensified competition from China and weakening demand within the European market. “EU’s struggles present Indian chemical companies with an opportunity to gain market share; however, they face hurdles such as Chinese predatory pricing — which undermines Indian competitiveness,” the report notes. China remains a dominant force in the global chemical sector, and its aggressive pricing strategies continue to pose a significant obstacle to Indian exporters aiming to grow their footprint in Europe. Compounding the issue is sluggish European demand. According to recent data from the European Chemical Industry Council (CEFIC), the EU chemical sector began 2025 on a subdued note, with expected annual growth of less than 0.5 per cent — a sharp decline from 2.5 per cent in 2024. A major factor driving this downturn is the high cost of energy. European gas prices currently stand at 3.3 times those in the US, undercutting industrial competitiveness and dragging down chemical production across the region. Despite these headwinds, India maintains a strong trade relationship with the EU27. It ranks as the fifth-largest chemical exporter to the bloc, accounting for 2.0 per cent of EU chemical imports, valued at €11.9 billion. In contrast, EU chemical exports to India total €6.0 billion. While European market disruptions present Indian firms with a strategic opportunity, the B&K analysis underscores that future gains will hinge on a recovery in EU demand and India’s ability to withstand ongoing pressure from Chinese pricing practices. “Sustained recovery in European demand is essential for long-term growth in Indian chemical exports,” the report concludes. “Until then, Indian companies may find it difficult to fully leverage their competitive positioning in the global market.”
