Unveiling India’s Thriving Petrochemicals Sector: A Bold $300 Billion Vision by 2025 – Insights from Hardeep Puri
New Delhi, Oct 18: The Indian chemicals and petrochemicals sector is set for significant growth, with expectations to reach a market size of $300 billion by 2025, up from $220 billion, as announced by Union Petroleum Minister Hardeep Singh Puri. Addressing the ‘Roundtable on Petrochemical’ at ‘India Chem 2024’, Minister Puri highlighted that India’s demand for chemicals is poised to nearly triple, with the petrochemicals industry potentially reaching $1 trillion by 2040.
The chemicals sector contributes approximately 6% to India’s GDP and provides employment to over 5 million individuals. The sector is projected to attract over $87 billion in investments within the next decade, representing over 10% of global petrochemical growth. Under the PCPIR Policy 2020-35, the government aims for Rs 10 lakh crore (around $142 billion) in combined investment by 2025 to fuel long-term industry growth.
India, with an annual consumption of 25 to 30 million tonnes, ranks as Asia’s third-largest economy. Despite its lower per capita consumption compared to developed nations, it holds vast potential for demand growth. As the sixth-largest chemicals producer globally and the third in Asia, India exports chemicals to over 175 countries, making up 15% of its total exports.
The Minister emphasized the pivotal role of chemicals and petrochemicals in global oil demand growth, linked closely to India’s expanding refining capabilities, projecting an increase from 257 MMTPA to 310 MMTPA by 2028 to boost cost competitiveness. India’s petrochemical capacity is anticipated to surge from 29.62 million tonnes to 46 million tonnes by 2030.
Aligned with India’s transition to a lower-carbon future, significant investments totaling nearly $45 billion are underway in collaboration with public sector units like ONGC and BPCL and private entities like Haldia Petrochemicals. An additional $100 billion investment is projected to accommodate rising demands.
Original Story https://theshillongtimes.com/2024/10/18/indian-petrochemicals-sector-to-reach-300-billion-by-2025-hardeep-puri/
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