I have yet to read the report prepared by the Indian government's working group on the chemical industry for the 11th Five Year Plan and I must confess that I am not eagerly waiting for it. Previous reports have usually been filled with rosy projections that have fallen by the wayside as the Indian industry has struggled to overcome international competition while being tied down by feedstock, infrastructure and other bottlenecks.
However, I was quite surprised to read this article which states that the 11th Plan document has emphasised the number of constraints facing the Indian chemicals industry. The problems include small plants, high cost of inputs, poor infrastructure, stringent labour laws and of course the threat of FTAs.
Hopefully, this good dose of reality has resulted in more moderate demand growth projections.