Indian Chemicals and Petrochemicals Sector Expected to Reach $300 Billion by 2025: Hardeep Puri

New Delhi: The Indian chemicals and petrochemicals sector is poised for substantial growth, with its market size expected to rise from the current $220 billion to nearly $300 billion by 2025, according to Union Petroleum Minister Hardeep Singh Puri. The minister made this announcement during the ‘Roundtable on Petrochemical’ at the India Chem 2024 event.

The petrochemical industry in India is experiencing rapid expansion, with demand for chemicals expected to nearly triple, potentially driving the sector’s market to $1 trillion by 2040. The industry is vital to India’s economy, contributing 6% to the national GDP and supporting over 5 million jobs.

“The Indian petrochemical sector is set to attract more than $87 billion in investments over the next decade, accounting for over 10% of the global petrochemical industry’s growth,” Minister Puri highlighted. Under the PCPIR Policy 2020-35, the Indian government has set a target of Rs 10 lakh crore (around $142 billion) in investments by 2025, showcasing a long-term vision for the industry.

India, the third-largest economy in Asia, consumes between 25 to 30 million tonnes of petrochemicals annually. Despite its status as the sixth-largest producer of chemicals globally and third in Asia, India’s per capita consumption remains lower than that of developed nations, presenting significant opportunities for demand growth and investment.

Minister Puri emphasized that India’s integrated petrochemical capacity is expected to rise from 257 MMTPA to 310 MMTPA by 2028, enhancing the sector’s cost competitiveness. He also highlighted a projected increase in India’s petrochemical production capacity, set to grow from 29.62 million tonnes to 46 million tonnes by 2030. Ongoing projects totaling $45 billion, along with a projected $100 billion investment to meet growing demand, will be critical to supporting India’s transition to a lower-carbon economy.

India exports chemicals to over 175 countries, with the sector accounting for 15% of the nation’s total exports, positioning the country as a key player in global trade.