Indian chemicals companies are worried they will be left out of the global market as a result of Brexit and a surge in domestic demand.
India’s top chemical suppliers are facing a surge of demand in the world’s third largest economy, where the country’s economy is expected to grow 7 per cent this year.
But a growing domestic market, particularly in China, is also leading to higher prices.
Indian chemicals companies have warned they may be forced to lower production in China and sell at an artificially low price.
China’s imports of Indian chemicals jumped by 40 per cent in the year to March from the year before.
“The Chinese market is a very important market for us and the export of products from India is a major business for us,” Mr Tandon said.
The rise in Chinese demand has also led to the growth of a new industry: chemicals manufacturing.
Manufacturing in China has been a source of job growth for the country, and has led to an increase in manufacturing jobs.
However, the manufacturing sector in India has not seen much of an increase over the past two years.
In a speech at the National Economic and Development Commission, the prime minister said the industry was “a key engine of growth” in the country.
His speech came days after the International Trade and Investment Council (ITIC) warned of a potential spike in Chinese imports from India.
Last year, India imported $1.9 billion worth of Chinese goods.
It also imports $7 billion worth worth of equipment from China, the International Monetary Fund (IMF) said in a report last year.
India is India’s second-largest supplier of raw materials to China after China’s $1 trillion steel industry.
Chinese President Xi Jinping was due to visit India next month.
Mr Tandon, however, said the government would make it clear that China will remain India’s top supplier of chemical products.
He said China would make a “very clear” commitment that the country would continue to supply India with its chemical products at a fair price.
“The government has to make a clear commitment to India that we are going to make sure that our manufacturing and chemical sector will be here for a long time,” Mr Trandon said on Monday.
“India will continue to export to China at a very fair price.”‘
The Chinese are coming in’Mr Trandon also warned that India would not be able to rely on China to keep the world safe from chemicals.
There are currently three Chinese chemical plants in India.
“We have to get our own factories to manufacture our own products and then export to the Chinese market,” Mr Trudeau said.
“The Chinese will come in, they will buy our chemicals, we’ll have to make our own stuff, and we’ll go down the drain.”
Indian officials have been reluctant to accept the trade agreement, saying it would undermine their national sovereignty.
Instead, Mr Trudeau has promised to push for a “robust” trade agreement with China.
Prime Minister Mr Modi has also promised to use a “fair and effective” process to negotiate a trade deal with China, but said he will not make a decision until after the next general election in 2019.
Some industry groups have questioned the timing of Mr Trudeau’s speech.
Industry groups have called for a moratorium on all imports of Chinese chemicals, arguing that the rise in demand for chemicals is the result of a rise in domestic consumption.
They also warn that a rise of domestic demand will hurt the Indian economy.
While the trade deal is in its early stages, there have been growing calls to extend it.
An international body of regulators, the United Nations Industrial Development Organisation, is currently examining the implications of the trade pact and has said that it is likely to be concluded before the end of the year.