CHEMICAL INDUSTRY SURGES AHEAD

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In the Post – Reform period, the Chemical Industry has emerged as the most desirable industrial investment opportunity among all manufacturing sectors. The figures in Table I testify to this.

Table: I

Investment Flow into the chemical Sector in the Post Reform Period

(August 1991- December 2002)

Category	All Industries	Chemical Industry	Share of Chemical Industry (in percent)
IEMs* (Numbers)	47312	8241	17.42
LOIs** (Numbers)	3773	1175	31.14
Proposed Investment (Rs. Crore)	1144938	209485	18.3

Source: Secretariat for Industrial Assistance, Department of Industrial Promotion and Policy.

* Industrial Entrepreneur Memorandum

**Letter of Intent

Out of 47312 Industrial Entrepreneur Memoranda filed during August 1991 – December 2002, as many as 8241, accounting for 17.4 per cent of total number of IEMs filed, relate to the chemical industry – comprising basic Chemicals, Pharmaceuticals and Petro Chemicals. In case of Letters of Intent (LOI), out of 3773 LOIs filed as many as 1175 relate to investment in the chemical sector, thus account for 31 per cent of total LOIs filed.

In terms of flow of investment, out of total investment proposals of Rs.11,44,938 crore, an investment of 2,09,485 crore, accounting for 18.3 per cent of total, have been in the Chemical industry.

The Chemical industry continues to march ahead in the post reform period at a pace that outstrips all other industrial activity.