Chemicals & Petrochemicals Demand In India Expected To Triple To Reach USD 1 Trillion By 2040 : Hardeep Singh Puri
India is expected to account for more than 10% of the world's growth in petrochemicals :said the minister
The Union Minister of Petroleum & Natural Gas and Housing & Urban Affairs, Shri Hardeep Singh Puri, recently stated that 25% of the global energy demand growth in the next two decades will come from India. He made this announcement while speaking at the Asian Petrochemical Industry Conference in New Delhi. Dr. Mansukh Mandaviya, Minister for Health and Family Welfare and Minister for Chemicals & Fertilizers, also participated as a speaker at the conference.
Shri Puri highlighted the significance of the Indian Chemicals and Petrochemicals sector, which currently has a market size of USD 190 billion. He mentioned that this sector aligns with the government’s initiatives of Make in India and Make for the World, as it has the potential to transform India into a global manufacturing hub. India is the sixth-largest chemicals producer in the world and the fourth-largest in Asia, and it exports chemicals to more than 175 countries, accounting for 13% of India’s total exports.
Regarding the growth of the petrochemical sector in India, Shri Puri mentioned that it is driven by factors such as increasing demand from a growing population and a rapidly expanding economy. He stated that the Indian petrochemical industry is expected to contribute almost 10% to the incremental growth in global petrochemical demand in the coming years. The chemical sector in India continues to grow at a rate of 1.2-1.5 times the GDP, and it is projected to reach a valuation of USD 300 billion, attracting investments worth more than USD 87 billion in the coming decade.
The government has implemented several policies to boost the sector, including 100% foreign direct investment (FDI) through automatic routes and the establishment of Petroleum, Chemicals and Petrochemicals Investment Region (PCPIR) zones and plastic parks. The proposed new PCPIR policy, to be implemented between 2020-35, is expected to attract an investment of over INR 34 lakh crores (USD 420 billion) for the sector.
Shri Puri also emphasized that India’s petrochemicals capacity is integrated with petroleum refineries, providing feedstock certainty. India has increased its refining capacity from 215 million metric tons per annum (MMTPA) in 2013-14 to 251.2 MMTPA, making it the fourth-largest refining capacity in the world after the United States, China, and Russia.
In conclusion, the Petroleum Minister highlighted the potential investment opportunities in the Indian petrochemical sector, stating that there are opportunities worth USD 30 billion in the coming decade. The government is actively addressing challenges and implementing initiatives to improve the competitiveness, quality, and output of the industry. Shri Puri shared that the demand for chemicals and petrochemicals in India is expected to nearly triple and reach USD 1 trillion by 2040.