Chemicals & Petrochemicals demand in India expected to nearly triple and reach $1 trillion by 2040: HS Puri
2 min read 19 May 2023, 08:56 PM ISTIndia is set to account for over 10% of the global growth in petrochemicals.
PremiumNew Delhi: The demand for chemicals and petrochemicals in India is expected to nearly triple, reaching a staggering $1 trillion by 2040, said Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs Hardeep Singh Puri on Friday.
Speaking at the Asian Petrochemical Industry Conference in New Delhi, Puri highlighted India’s crucial role in global energy demand growth, stating that 25% of the increase in energy demand over the next two decades would emanate from the country.
Addressing the audience, Puri emphasized the significance of energy availability, affordability, and security for all. He highlighted the current market size of the Indian Chemicals and Petrochemicals sector, which stands at $190 billion. Puri underscored that this sector aligns with Prime Minister Narendra Modi’s flagship initiatives, Make in India and Make for the World, as it has the potential to transform India into a global manufacturing hub. India already ranks sixth in the world and fourth in Asia in terms of chemicals production, exporting to over 175 countries and accounting for 13% of the nation’s total exports.
Puri discussed the growth trajectory of the petrochemical sector in India, attributing its success to various factors, including increasing demand driven by population growth and a rapidly expanding economy. He stated that the Indian petrochemical industry is expected to contribute nearly 10% to the incremental growth in global petrochemical demand in the coming years.
The minister shared remarkable statistics, highlighting the sector’s growth rate of 1.2-1.5 times the country’s GDP. As the chemical market in India is projected to reach $300 billion, a surge from the current valuation of $178 billion, the next decade is poised to witness investments exceeding $87 billion. India is set to account for over 10% of the global growth in petrochemicals.
Puri underscored the Indian government’s commitment to fostering a favorable business environment. Measures such as 100% foreign direct investment (FDI) through automatic routes, Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) zones, and the establishment of 10+ plastic parks have been implemented to boost the sector. He also mentioned the forthcoming PCPIR policy, slated for implementation between 2020-2035, which is expected to attract investments exceeding ₹34 lakh crore ($420 billion) in the sector.
Highlighting the promising investment opportunities in the petrochemical sector, Puri stated that the coming decade offers potential investments of $30 billion. The Indian government is proactively addressing current challenges and implementing flagship initiatives to enhance competitiveness, quality, and industry output.
The minister concluded by reiterating that India possesses a significant advantage, with 80% of its petrochemical capacity integrated with petroleum refineries, ensuring feedstock certainty. He emphasized the nation’s increased refining capacity, rising from 215 million metric tonnes per annum (MMTPA) in 2013-14 to 251.2 MMTPA, making India the world’s fourth-largest refining capacity after the United States, China, and Russia.
