This study analyzes the impact of the slowdown on the Indian chemical industry and the main drivers for rebound. The first section 'Origin of Crisis', shows the Sub-prime model along with the cause and effect of the same in the global economy. Again, the second section depicts the effect of global financial slowdown on various key indicators of Indian economy. The third section presents the timeline and outlook for the economy to rebound. The fourth section shows the effect on global as well as Indian Chemical Industry. Finally, the last section presents the conclusion along with the steps to rebound the economy.