The buoyant domestic demand for Composites provides a driving impetus for all stakeholders within the value chain; – Raw Materials suppliers and End Component fabricators, thus boosting employment prospects as well. Currently, the Indian Composites Industry is poised to provide a lucrative opportunity to the International Composites Community, and the still untapped markets will provide a platform for investments, both FII & DII.

The Composites Industry is cyclical in nature, depending on the country’s economic growth and business cycles. It is dominated by institutional business (B2B and B2G), which is correlated with applications, sectors, technology and country’s overall GDP growth as well.

The Indian Composites Industry has witnessed single digit growth in recent years and is expected to grow at a Compounded Annual Growth Rate (CAGR) of 8.2% in the next five years. The per capita consumption of composites in India is around 0.3 kg, against 2.5 kg in China and 11 kg in US.

The major driver for the Indian composites market growth is ‘Make in India Initiative’, the rise in demand of Composite Components is imminent for Renewable Energy, Oil & Gas, Mass Transportation, Electrical and Electronics, Chemical Industry, Infrastructure, Building and Construction (smart cities development, etc.) and Water Management.

Overall The Indian Composites Industry has experienced a comparatively healthy growth over the last five years and caters to a wide assortment of raw materials, components, and sectors. The current (in 2018) Indian Composites Market is estimated at 3.4 lakh metric tonnes, this is up 6.3% over the previous year, and witnessed the highest growth since 2015. The market is driven by growth in Mass Transportation, Electrical and Electronics, Infrastructure, Building and Construction. The per capita composites consumption reached 0.3 kg in 2018 from 0.25 kg in 2012. The Indian composites industry has a fragmented structure, consisting of around 3000 stakeholders in the value chain including small, mid-sized and large players across the country.

In September 2017, Industrial Major, – Reliance Industries Ltd. (RIL) made a foray into the growing Indian Composites market. The Indian Composites industry is projected to grow rapidly to reach 4.9 lakh metric tons by 2022 at a substantial CAGR of 8.2%. This scale of growth should result from rebounding Renewable Energy, growth in Mass Transportation, penetration of composites in the strategic sectors and modestly rising index of industrial production.