India Ammonia Market is anticipated to reach at USD 5.44 billion in FY2031 growing at a CAGR of 8.1% during the forecasted period in FY2024-FY2031 and was valued at USD 3.15 billion in FY2023.
Home>Industry Reports>India Ammonia Market Assessment, Opportunities, and Forecast, FY2017-FY2031F
India Ammonia Market is anticipated to reach at USD 5.44 billion in FY2031 growing at a CAGR of 8.1% during the forecasted period in FY2024-FY2031 and was valued at USD 3.15 billion in FY2023. The growth of ammonia market in India is led by the increasing demand from chemical industries for its usage in the production of plastics, detergents, and fertilizers. The booming pharmaceutical sector also adds to the growth of ammonia market in India as ammonia is largely being used in the manufacturing of drugs and vaccines.
The ammonia market is a significant and growing sector within the Indian economy. The agriculture sector is the largest consumer of ammonia in India, with most of the ammonia produced in the country being used as a raw material to produce fertilizers. India's ammonia-based fertilizer industry is also supported by government subsidies and incentives. India's ammonia production is primarily based on natural gas and naphtha, which are used as feedstocks. Most of the country’s ammonia production takes place in the states of Gujarat, Uttar Pradesh, and Andhra Pradesh. The ammonia market in India has experienced significant growth over the past few years. India is the world’s third-largest producer of ammonia, behind China and Russia, with a production capacity of around 35 million metric tons per year.
Increasing Demand for Fertilizers
One of the primary drivers of the growth of the ammonia industry in India is the increasing demand for fertilizer mainly for the maintenance of soil fertility. Ammonia is a key component of many fertilizers, and with the growing population and increasing food demand, the demand for fertilizers is also increasing. India has a large agricultural sector, and the government has been promoting the use of fertilizers to increase crop yields and ensure food security.
Growing Usage as a Refrigerant
Ammonia is widely used as a refrigerant gas and in air-conditioning appliances owing to its properties that helps in absorbing heat coming out from its surroundings. The extreme hot and humid weather conditions in India, mainly in the coastal regions witness and an increasing installation of refrigerators and air-conditioners, which is eventually driving the utilization of ammonia in various sectors in the country.
Government Initiatives
The Indian government has launched several initiatives to support and promote the ammonia market in India, listed as follows:
· Production-Linked Incentive (PLI) Scheme: In 2021, the Indian government announced a PLI scheme for the chemical sector, including the ammonia industry. Under this scheme, eligible companies are offered financial incentives to increase their production capacity, improve the quality of their products, and reduce their environmental impact.
· Subsidies for Fertilizer Production: The Indian government provides subsidies to fertilizer manufacturers to ensure the availability of fertilizers at affordable prices. This has helped to increase the production of ammonia-based fertilizers sand support the growth of the ammonia industry.
· Incentives for Green Ammonia: The Indian government has recently announced incentives to produce green ammonia, which is produced using renewable energy sources. These incentives include tax exemptions and financial support for research and development. Manufacturers are tapping the market potential and benefit of the government incentives by launching new ammonia plants. In 2022, Avaada Energy proposed INR 400 billion investment to set up green ammonia manufacturing plant in the state of Rajasthan with an aim to produce 5 million metric tons of green hydrogen by the year 2030.
Overall, the government initiatives in India aim to support the growth of the ammonia industry, promote the use of fertilizers, and encourage sustainable and eco-friendly production practices.
Impact of COVID-19 on India Ammonia Market
The COVID-19 pandemic has had a significant impact on the ammonia industry in India. The lockdowns and restrictions on movement that were put in place to contain the spread of the virus resulted in a decrease in demand for fertilizers, which in turn led to a decrease in the demand for ammonia. As a result, many ammonia producers in India were forced to cut production or shut down operations temporarily.
In addition, the disruption in global supply chains caused by the pandemic resulted in shortages of raw materials and a decrease in the availability of equipment and spare parts, which further impacted the ammonia industry. Overall, while the COVID-19 pandemic had a negative impact on the ammonia industry in India, the sector has shown resilience and is expected to recover as the economy continues to reopen and demand for fertilizers increases.
Impact of Russia-Ukraine War on Ammonia Market in India
The ongoing Russia-Ukraine conflict has impacted the ammonia industry in India in several ways. Russia and Ukraine are among the largest producers and exporters of ammonia in the world and their conflicts may disrupt the production and supply of ammonia from these countries, which could lead to a shortage of supply and an increase in global ammonia prices, which could impact the cost of ammonia for Indian manufacturers. On the other hand, the conflict also creates opportunities for the Indian ammonia industry, particularly if there is a shift in global supply chains. If Russian and Ukrainian producers are unable to supply ammonia to other parts of the world, it could create opportunities for Indian manufacturers to expand their exports.
Report Scope
“India Ammonia Market Assessment, Opportunities and Forecast, FY2017-FY2031F”, is a comprehensive report by Markets and Data, providing in-depth analysis and assessment of the current scenario of Ammonia market in India, industry dynamics and challenges. The report includes market size, segmental shares, growth trends, COVID-19 impact, opportunities and forecasts between FY2024-FY2031. Additionally, the report profiles the leading players in the industry mentioning their respective market share, business model, competitive intelligence, etc.
Report Attribute |
Details |
Base Year for Analysis |
FY2023 |
Historical Period |
FY2017-FY2022 |
Forecast Period |
FY2024-FY2031 |
Market Size in FY2023 |
USD 3.15 Billion |
Projected Growth Rate |
CAGR of 8.1% from FY2024-FY2031 |
Revenue Forecast in FY2031 |
USD 5.44 billion |
Units |
Revenue in USD and Volume in Tons |
Segments Covered |
By Physical Form By Extraction Process By Application |
Regions Covered |
North South East West & Central |
Key Companies Profiled |
Chambal Fertilizers and Chemicals Ltd., Super Ammonia Pvt Ltd., Gujarat Narmada Valley Fertilisers and Chemicals (GNFC), Indian Farmers Fertiliser Cooperative Limited (IFFCO), Krishak Bharati Co-Operative Limited (KRIBHCO), Deepak Fertilisers and Petrochemicals Corporation Limited, Southern Petrochemicals Industries Limited (SPIC), NFCL (Nagarjuna Fertilizers and Chemicals Limited), Tata Chemicals Ltd., Mysore Ammonia Pvt. Ltd. |
Customization Scope |
15% free report customization with purchase. |
Pricing and Purchase Options |
Avail the customized purchase options to fulfil your precise research needs |
Delivery Format
|
PDF and Excel through email (subject to the license purchased) |
In this report, India Ammonia Market has been segmented into following categories:
1. India Ammonia Market, By Physical Form
1.1. Anhydrous Ammonia
1.2. Aqueous Ammonia
2. India Ammonia Market, By Extraction Process
2.1. Steam Reforming
2.2. Partial Oxidation
2.3. Cryogenic Separation
2.4. Coal Gasification
3. India Ammonia Market, By Application
3.1. Agricultural (Fertilisers)
3.2. Industrial
3.2.1.Pharmaceutical
3.2.2.Mining
3.2.3.Petroleum
3.2.4.Wastewater Management
3.2.5.Explosives
3.2.6.Consumer Durables
3.2.7.Textiles
3.2.8.Automotive
3.2.9.Pulp & Paper
3.2.10. Rubber & Leather
3.2.11. Food and Beverage
3.2.12. Others
4. India Ammonia Market, By Region
4.1. North
4.2. South
4.3. East
4.4. West & Central
Key Player Landscape and Outlook
India ammonia market report presents a comprehensive competitive landscape analysis and evaluates the competitive position of various players based on a variety of performance metrics. The report includes financials of the public/listed companies over the previous few years, their growth plans, product development, launch of new products, market share, investments, etc. To expand the market share and profitability, several businesses are focusing on newer technologies to improve the efficiency of their ammonia plants. For example, Chambal Fertilizers and Chemicals Ltd. (CFCL) achieved lowered energy consumption with the value of 6.417 Gcal per metric ton using KBR technology in 2020.
Key Players Operating in India Ammonia Market
· Chambal Fertilizers and Chemicals Ltd.
· Super Ammonia Pvt Ltd.
· Gujarat Narmada Valley Fertilisers and Chemicals (GNFC)
· Indian Farmers Fertiliser Cooperative Limited (IFFCO)
· Krishak Bharati Co-Operative Limited (KRIBHCO)
· Deepak Fertilisers and Petrochemicals Corporation Limited
· Southern Petrochemicals Industries Limited (SPIC)
· NFCL (Nagarjuna Fertilizers and Chemicals Limited)
· Tata Chemicals Ltd.
· Mysore Ammonia Pvt. Ltd.
If you can't find what you're searching for or have any custom requirements for India Ammonia Market, you may approach our team at info@marketsandata.com
The global polyurethane market is expected to witness significant growth, driven by increasing demand from the construction industry and rising trends for light-weight and fuel-efficient vehicles.....Read More
Published on
October 2024
4,500
The global cold heading quality wire market is driven by the increase in adoption of cold forged parts, increasing demand for fasteners in industries such as automotive, construction, and aerospace, fueling the need for high-quality cold heading qual....Read More
Published on
October 2024
4,500
The global C5 resin market is expected to experience significant growth due to increasing demand for adhesives and sealants, paints, and coatings in the construction industry, coupled with rising applications of rubber products in the automotive indu....Read More
Published on
October 2024
4,500
The global malic acid downstream potential market is expected to experience growth due to increasing demand from the food and beverage industry used as an acidulant and a flavor enhancer, coupled with the increasing demand from the personal care and ....Read More
Published on
September 2024
4,500
Purchase Options
USD ($)
i
1,840
2,000
8%
i
2,970
3,300
10%
i
3,960
4,500
12%
i
5,950
7,000
15%
Tired of Searching?
Looking for Customization?
Some other doubt?
Need insights from a cohort?
REACH US