Indian chemical industry has the potential to grow to USD 226 billion by 2020 from the current size of about USD 147 billion, according to Tata Strategic Management Group report.\u00a0Tata Strategic Management Group today published the 2016 'India Chem' handbook, which was released by Chemicals and Fertiliser Minister Ananth Kumar. "Today, at a domestic market size of USD 147 billion the Indian industry accounts for approximately 3 per cent of the global chemical market. It is highly diversified with more than 80,000 chemicals and currently accounts for 15 per cent of India's manufacturing GDP which makes it very crucial for the economic development of the country," a statement said. "The Indian chemical industry is a vital component of the Indian economy and has the potential to grow to a size of USD 226 billion by FY20 through a series of concerted efforts," said Raju Bhinge, CEO, Tata Strategic Management Group.\u00a0"This aspirational growth scenario places greater emphasis on the specialty, pharmaceutical and biotech segments. In order to realise the true potential, Industry, Government and Regulatory bodies need to work in tandem," he said. The handbook details the demand-supply scenario over the next five years and also the key growth drivers.\u00a0With initiatives like "Make In India" programme gaining steam, the report said that investments, innovation and infrastructure are going to be the major thrust areas for chemical industry. "GST reform will also give a boost to the chemical industry by lowering the transaction cost and avoiding cascading effect on taxes," the statement said. Initiatives like setting up a fully functional single window system for all clearances (SWIFT), reforming labour laws, easing the land acquisition rules coupled with 'Make in India' and GST, are expected to propel Indian chemical industry forward, it added.