India to attract $87 billion investment in petrochemicals over next decade: Hardeep Singh Puri

Oct 19,2024

India is expected to receive investments worth $87 billion in the next decade to meet the nation’s rising demand for petrochemicals, the country’s oil minister Hardeep Singh Puri said on October 19. 

“As more citizens enter the middle class, the demand for a diverse range of products, many of which are derived from petrochemicals, is set to rise significantly,” Puri said at the India Chem 2024 event in Mumbai. 

He said India’s per capita petrochemical consumption is far below developed nations, which offers opportunities of higher investment in the sector. 

India consumes 25-30 million metric tonnes of petrochemical products annually, and the chemical and petrochemicals sector, currently valued at $220 billion, is expected to grow to $300 billion by 2025 with demand projected to triple by 2040, potentially reaching a staggering $1 trillion, Puri said. 

India, China and the Middle East have been developing domestic petrochemical production to provide tailwinds to decades of oil refining, even as the world looks to switch to cleaner energy sources. 

The government, alongside PSUs like ONGC and BPCL and private players like Haldia Petrochemicals, is committed to significant investments, with nearly $45 billion in petrochemical projects underway, the oil minister said. An additional $100 billion is projected to meet rising demand, aligning with India’s transition to a lower-carbon future.  

He did not specify a timeline for the projected investment. 

Puri also highlighted India’s petrochemicals production to increase from 29.62 million tonnes to 46 million tonnes by 2030. 

The Minister mentioned about key policies including the development of Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs), Plastic Parks, and Textile Parks, besides facilitating 100 percent Foreign Direct Investment (FDI) through automatic routes. 

Puri said that the petrochemical sector in India is projected to attract investments exceeding $87 billion in the next decade, representing over 10 percent of global petrochemical growth. Under the new PCPIR Policy 2020-35, a combined investment of Rs 10 lakh crore (approximately $142 billion) is targeted by 2025, underscoring the government’s long-term vision for the industry, he added. 

With a strong starting point and supportive government policies, Puri said India has the potential to become the next global chemicals manufacturing hub.