The chemical industry in India is the 12th largest chemical industry in the world, ranks third in Asia, and it is set to grow much further. According to a recent report by McKinsey, “the industry has the potential to grow at 13% to 16% per year to reach $80 billion to $100 billion by 2020. The industry is roughly divided into three segments: basic chemicals account for 57.14% of the industry, specialty chemicals for 25.71% and knowledge chemicals for 17.14%. Bolstered by investment-friendly government policies, including a goal to boost exports significantly in global markets, chemical exports grew at a compounded annual growth rate of 18% between 2008 and 2009 and the Commerce Ministry has a target to double exports from the chemical industry by 2014. However, despite the large gains in chemical exports, new opportunities have appeared on the domestic horizon and an increasing number of companies are no longer seeing India solely as an outsourcing base.