India is set to witness $87 billion worth of investments in its petrochemical sector over the next 10 years, according to Hardeep Singh Puri, the country’s oil minister. Speaking at the India Chem 2024 event in Mumbai, Puri highlighted the rising demand for petrochemicals as more citizens join the middle class, creating a need for a wide range of petrochemical-derived products.
India’s current per capita consumption of petrochemicals remains significantly lower compared to developed countries, presenting vast opportunities for increased investment. At present, India consumes around 25-30 million metric tons of petrochemical products annually. The sector, currently valued at $220 billion, is projected to grow to $300 billion by 2025.
As global attention shifts towards cleaner energy, India, alongside China and the Middle East, continues to ramp up domestic petrochemical production. This effort complements decades of investment in oil refining, even as the world gradually transitions to sustainable energy sources.
Several state-owned and private companies, including Nayara Energy and Haldia Petrochemicals, have already outlined expansion plans. Puri mentioned that companies like ONGC, BPCL, and Haldia have committed $45 billion in investments, with an additional $100 billion anticipated to meet growing demand.
India’s petrochemical production is expected to surge from the current 29.62 million tons to 46 million tons by 2030, Puri added. These developments underscore the sector’s crucial role in supporting India’s economic growth and the country’s shift toward a lower-carbon future.
