The Indian chemical industry is staring at an opportunity and challenges as they gear up to fill the supply gaps for global businesses. The biggest challenge for Indian companies is to negate the pricing advantage that China has built over the years.

The Chinese chemical industry is also aggressively supported by business and export subsidies, and plenty of liquidity. Another factor working in China's favour is their aggressive, fast-moving government, making it harder for Indian businesses to respond.

Key takeaways:

To compete with China effectively at the same level, India would have to see tax breaks, faster approvals and subsidies. It will also have to kick start the economy which is causing lower demand, pressure on margins, labour shortages and rising costs.