APIC ’23: India petchems demand to nearly triple by 2040 – oil minister

NEW DELHI (ICIS)–India’s petrochemicals demand is expected to nearly triple by 2040, with the industry’s value to reach the $1 trillion mark on the back of strong economic growth and investments, a government minister said on Friday.

“We are expecting in the coming decades to bring in investments worth more than $87bn,” Hardeep Singh Puri, the minister of Housing and and Urban Affairs, Petroleum & Natural Gas, told delegates at the Asia Petrochemical Industry Conference (APIC).

“The Indian chemical sector continues to grow at a rate of 1.2-1.5 times the GDP [rate] going forward and if you look at Indian GDP growth, this is not insignificant,” he said.

The Indian government is working towards reducing the country’s import reliance, he said.

“The government of India is proactively addressing the present challenges and implementing several flagship initiatives to improve the overall competitiveness, quality and output of the industry,” the minister said.

India is currently is a net importer of all major petrochemicals except for benzene and polyester chips, he said.

“India’s import dependency on petrochemical intermediaries is a staggering 45%, one of the highest in the manufacturing industry,” he said.

About 80% of India’s petrochemicals capacity is currently integrated with petroleum refineries, he said.

“This gives you an edge in terms of petrochemical feedstock. Certainly, we have increased our refining capacity from 215m tonnes/year in 2013-14 to 251.2m tonnes/year, the fourth largest in the world, after the United States, China and Russia,” he said.

“And we have plans in place to take this…to nearly 400m or 450m tonnes per annum,” the minister said without specifying a time frame.

The two-day APIC 2023 organized by India’s Chemicals & Petrochemicals Manufacturers’ Association (CPMA) ends Friday.

Focus article by Nurluqman Suratman