India 2018

Industry 357
requirement of nittogenous fertilzers through the indigenous industry besides
imports. Similarly, 50 per cent indigenous capacity has developed in respect of
phosphatic fertilizers to meet domestic requirements. However, the rawmaterials
and intermediates for the same are largely imported. For potash (K).
since there are no viable sources/reserves in the country, its entire requirement
is met through imports.
Growth of Fertilizer Industry
The actual production of all the fertilizers during the year 2015-16 was 413.14
LMT. The estimated production of all the fertilizers during the year 2016-17 is
expected to be 430.99 LMT showing an increase of more than 4 per cent in
comparison to the previous year. The installed capacity of DAP and Complex
fertilizers during 2016-17 have reached a level of 146.00 LMT as against 144.04
LMT in 2015-16. The rapid build-up of fertilizer production in the country has
been achieved is a result of a favourable policy environment facilitating
investments in the public, co-operative and private sectors.
Production of Major Fertilizers
The production of urea during the year 2015-16 was 244.75 LMT and the
production of DAP and complex fertilizers were 1,20.88 LMT, The estimated
production of Urea during 2016-17 is expected to be 243.29 LMT, which is almost
equal to provious year and the estimated production of DAP and Complex
ferrilizers is expected to be 12.26 LMT, representing a growth rate of
approximately 6 per cent in comparison to previous year.
Chemicals and Petrochemical Industry
The chemical and petrochemical industry is a knowledge and capital intensive
industry. It is an integral constituent of the growing Indian Industry. It includes
basic chemicals and its products, petrochemicals, fertilizers, paints, varnishes,
gases, soaps, perfumes and toiletry and pharmaceuticals. This industry occupies
a pivotal position in meeting basic needs and improving quality of life. The
industry is the mainstay of industrial and agricultural development of the
country and provides building blocks for several downstream industries, such
as textiles, papers, paints, soaps, detergents, pharmaceuticals, varnish, etc.
India produces a large number of fine and speciality Chemicals, which
have very specific uses and find wide usage as food additives, pigments,
polymer additives and anti-oxidants in the rubber industry, etc. In the chemical
sector, 100 per cent FDI is permissible. Manufacture of most of the chemical
and petrochemical products is delicensed. The entrepreneurs need to submit
an Industrial Entrepreneurs' Memorandum (IEM) to the Department of
Industrial Policy and Promotion provided no locational angle is applicable. Only
the following items are covered in the compulsory licensing list because of their
hazardous nature:- hydrocyanic acid and its derivatives; phosgene and its
derivatives; and isocynates and di-isocynates of hydrocarbons. The production