A Strategic Approach to Strengthening International Competitiveness in Knowledge Based Industries: Indian Chemical Industry

AbstractIndian chemical industry, traditionally insulated from rest of the world, of late has been exposed to global competition. The paper examines its coping strategies and sectoral innovation system: industry’s evolution, major characteristics, policy and institutional framework, and its competitive edge in the global chemical industry. It prescribes some policy guidelines both for the business enterprises and the policy makers. Enterprises need to develop a strategic intent, choose a right business model to operate, develop technological competence to innovate, and focus on economies of scale, quality and environmental norms. Further, it emphasizes the need for strengthening chemical innovation system, availability of institutional finance for modernization, exports and investment, rationalization of the tariffs on import of strategic inputs, and promoting knowledge and chemical parks