The country’s oil minister, Hardeep Singh Puri, stated on October 19 that $87 billion in investments are anticipated to be made in India over the next ten years to address the country’s growing need for petrochemicals. “Demand for a wide range of products, many of which are derived from petrochemicals, is set to rise significantly as more citizens enter the middle class,” Puri stated at the India Chem 2024 event in Mumbai. According to him, India has significantly lower per capita usage of petrochemicals than industrialised countries, which presents prospects for further investment in the industry.
According to Puri, the chemical and petrochemicals business, presently valued at $220 billion, is likely to expand to $300 billion by 2025, with demand predicted to treble by 2040 and could reach a startling $1 trillion. India consumes 25–30 million metric tonnes of petrochemical goods yearly. Even as the globe attempts to shift to greener energy sources, India, China, and the Middle East have been growing domestic petrochemical manufacturing to offer tailwinds to decades of oil refining.
The oil minister stated that over $45 billion worth of petrochemical projects are now under development, demonstrating the government’s commitment to large investments alongside PSUs like ONGC and BPCL and private companies like Haldia Petrochemicals. Rising demand is expected to require an extra $100 billion, in line with India’s shift towards a future with reduced carbon emissions.
He did not give an anticipated investment timeframe. Puri also mentioned that by 2030, India will produce 46 million tonnes of petrochemicals, up from 29.62 million tonnes currently. In addition to enabling 100% Foreign Direct Investment (FDI) through automatic pathways, the Minister discussed important measures such as the creation of Plastic Parks, Textile Parks, and Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs).
According to Puri, the Indian petrochemical industry is expected to draw in more than $87 billion in investments over the course of the next ten years, accounting for more than 10% of the increase in the worldwide petrochemical market. He said, “A combined investment of Rs 10 lakh crore (approximately $142 billion) is targeted by 2025 under the new PCPIR Policy 2020-35, underscoring the government’s long-term vision for the industry.” Puri stated that India has the potential to emerge as the next global centre for the manufacture of chemicals, provided it has a solid foundation and policies that encourage it.
