Chemical Fertilizer Industry

India is predominantly an agrarian economy. The Indian economy mainly depends upon its agricultural produce. The agricultural output contributes to about 25% of the country's GDP. As a result of the chemical fertilizers being one of the related parts of the agriculture, there is tremendous scope for the growth of the chemical fertilizer industry.


Today, the Indian chemical fertilizer industry is developing fast in terms of using the latest world-class technology. Indian manufacturers of chemical fertilizers are now adopting some of the most advanced manufacturing processes to prepare innovative new products to supplement the Indian agriculture. India is also ranked as the third-largest exporter and producer of nitrogenous fertilizer.


In the present day scenario, there are more than 57 large-sized and 64 medium- and small-sized chemical fertilizer production units in India. The main objective of these chemical fertilizer industries is to make sure that there is a proper supply of primary and secondary fertilizers to the Indian crops in adequate quantities. Some of the prominent products manufactured by the Indian fertilizer industry are nitrogenous fertilizers, phosphate-based fertilizers, calcium ammonium nitrate, urea, ammonium sulfate, and other complex fertilizers.


The chemical fertilizers industry in India has performed a significant role in enabling the increased supply of essential nutrients to plants. It has also helped India achieve the objective of being self-sufficient in the production of food grains and has accelerated the growth of agriculture.


The chemical fertilizer industry is one of the most energy-intensive sectors, and it is very vital from the viewpoint of environmental discussions. Today, there is a great need to increase the productivity of chemical fertilizers through implementation of pollution-free and environment-friendly technologies. This will be helpful in achieving economic, social, and environmental development objectives.


The chemical fertilizer industry of India gained momentum after India adopted the liberalization and globalization policy in 1991. The government aimed to reduce subsidies and attract new investments by decontrolling all the phosphatic and potassic fertilizers.


The Department of Fertilizers is the nodal organization that is responsible for the planning, development, and promotion of the chemical fertilizer industry in India. This department also monitors the production, distribution, and imports of fertilizers. Besides, it is also responsible for management and provides financial assistance to the investors who are investing in the sector.  


The Indian Chemical Fertilizer industry promises a great future for investments. India's demand for fertilizers is set to increase its supply manifold in the near future. Thus, there are great investment opportunities for foreign investors to invest in the Indian chemical fertilizers industry, optimize the fertilizer production through the use of modern technology, and gain valuable returns. The government of India has made ambitious plans to set several chemical fertilizer projects in place. These plans aim to increase the production of fertilizers; thus, there are a lot of opportunities for new investors to enter into a joint venture with government undertakings and earn good returns on investments.


Great potential lies ahead for foreign investors looking to invest in the chemical fertilizers industry in India if they invest in the state of Gujrat as the state is foreseen to be a leading state in the production of fertilizers.