The chemical industry in India is diversifying and growing fast. It contributes approximately percent 3% of GDP. It is the third largest in Asia and occupies twelfth place in the world in terms of its size. It comprises both large and small scale manufacturing units. Rapid growth has been recorded in both inorganic and organic sectors. Inorganic chemicals include sulphuric acid, nitric acid, alkalies, soda ash and caustic soda. These industries are widely spread over the country.
Organic chemicals includes petrochemicals, which are used for manufacturing of synthetic fibres, synthetic rubber, plastics, dye-stuffs, drugs and pharmaceuticals. Organic chemical plants are located near oil refineries and petrochemical plants.
The chemical industry has its own largest consumers. Basic chemicals undergo processing for the further production of other chemicals that are used for industrial application, agriculture or directly for consumer markets.