India’s petrochemical sector is projected to reach $300 billion by 2025, with the potential to grow over threefold to exceed $1 trillion by 2040, according to Union Minister for Petroleum and Natural Gas Hardeep Singh Puri. In a recent statement, Puri emphasised that under Prime Minister Narendra Modi's leadership, India is evolving into a global petrochemical powerhouse.

Highlighting current and future projects, Puri noted that this rapid growth in the petrochemical industry will drive job creation, economic expansion, and a sustainable future for India. The government has introduced initiatives like Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and allows 100% Foreign Direct Investment (FDI), making India an attractive destination for global investors focused on building a greener economy.

India’s growing population and expanding middle class are fueling demand for products from fertilizers to electronics. Despite being the world’s sixth-largest chemicals producer, India’s per capita consumption is still below developed countries, indicating significant growth potential. To meet this demand, state-owned companies like ONGC and BPCL are collaborating with private firms, investing around $45 billion in new projects, with government expectations of an additional $100 billion in investments over the next decade.

While India has opened doors to foreign investment, it still imports about 45% of its petrochemical intermediates. The specialty chemicals sector, growing at an annual rate of 12%, is another area with high potential. Drawing inspiration from global chemical hubs, India is working on creating industrial clusters that promote innovation, optimise costs, and establish world-class infrastructure for the petrochemical industry.

(TOI)