The government has set up a taskforce to keep a close watch on attempts by other countries to dump goods at predatory prices to exploit the Indian market, following the hike in tariffs announced by the Donald Trump administration which makes it difficult to export to the US, a top government official said on Wednesday.

“A new world order is developing with tariffs and retaliatory tariffs announced almost in real-time. Exports to the US may be re-directed towards us, so we need to be vigilant against dumping and predatory pricing which may happen in the next few months. A task force under the Ministry of Commerce had been set-up to closely monitor the situation,” said Deepak Mishra, Joint Secretary, Petrochemicals, Department of Chemicals and Petrochemicals.

Addressing the 'India Speciality Chemicals Conclave' organised here by Assocham, Mishra also said that India’s chemicals sector “may benefit from this development.”

“We are working to develop a Registration, Evaluation, Authorization and Restriction of Chemicals (REACH) framework for India. Once this is in place, products can be branded accordingly in conformity to international environmental norms and quality controls," he explained.

Mishra pointed out that research and development is crucial for the speciality chemicals business as it is more of a knowledge-centric business.

“The industry must work together with academia to enhance capabilities for research. We have a great ecosystem of research labs in the country consisting of both government and private laboratories that are doing good work.” he added.

Kapil Malhotra, Co-Chairman, Assocham National Council on Chemicals and Petrochemicals said, “As a the dust from the US Tariffs begins to settle, the chemicals sector has seen a surge in activities with enquiries coming in from across the globe".

"Enquiries for specialty chemicals have also been coming in from China as they a majorly into bulk chemicals. Upstream and downstream MSME players can play a key role in expanding the Chemicals sector. If we channelise our energies with downstream units we can grow at a much faster rate than our current growth," Malhotra added.

Speaking at the conclave, CM Saikanth Varma, CEO, Andhra Pradesh Economic Development Board, said, “The scope for growth in the chemicals sector is phenomenal. Specialty chemicals is a priority sector where the state is keen to attract investment. The country’s largest petrochemical hub is proposed to be set-up in Mulapeta where a deep sea port is also under construction. The state also has one of the most conducive Industrial Policy in the country right now.”

“Mega and ultra-mega investments above Rs 1,000 crore and above Rs 5,000 crore, respectively, are eligible for tailor-made incentives where the investors can put forth their wish list and the government will try to meet them. With three industrial corridors passing through the state, six operational airports and access to ports and connecting ports the state offers seamless connectivity by road, sea and air,” he added.

Sagar Kaushik, Chairman, Assocham National Council on Chemicals and Petrochemicals, said that the global market for chemicals is about $6 trillion and 60 per cent of this is traded globally, offering a vast opportunity across multiple geographies and the differential sectors.