India's Petrochemical Industry Set To Hit USD 1 Tn By 2040: Hardeep Singh Puri
Date
11/7/2024 2:08:20 PM
(MENAFN- KNN India)
New Delhi, Nov 7 (KNN) India's petrochemical industry is set to reach a valuation of USD 300 billion by 2025, with projections indicating potential growth to USD 1 trillion by 2040, according to Union Minister for petroleum and Natural gas Hardeep Singh Puri.
Making the announcement via social media platform X, Minister Puri highlighted India's emergence as a global petrochemical powerhouse under Prime Minister Narendra Modi's administration.
The sector, currently valued at USD 220 billion, is witnessing unprecedented expansion that promises increased employment opportunities and economic growth while promoting self-sufficiency.
The government's ambitious vision is supported by strategic initiatives including the establishment of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) and allowing 100 percent Foreign Direct Investment (FDI). These measures are designed to attract global investors while maintaining a focus on environmental sustainability.
As the world's sixth-largest chemicals producer, India's growth potential remains substantial, particularly given its relatively low per capita consumption compared to developed nations.
The surge in demand is driven by the country's expanding middle class and growing population, spanning sectors from fertilisers to electronics.
Major public sector undertakings, including ONGC and BPCL, are collaborating with private entities to inject nearly USD 45 billion into new projects.
Government projections indicate an additional USD 100 billion in investments over the next decade.
However, the sector faces challenges, notably its dependence on imports for approximately 45 percent of petrochemical intermediates.
The specialty chemicals segment has emerged as a particular bright spot, experiencing robust annual growth of 12 percent.
Drawing inspiration from international chemical hubs, India is developing integrated clusters to foster innovation, optimise operational efficiency, and establish world-class manufacturing facilities.
(KNN Bureau)
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