India's Petrochemicals Sector Set for $87 Billion Investment Amid Rising Demand - Read Now
The Indian petrochemicals sector is going to see a complete transformation. Union Petroleum Minister Hardeep Singh Puri announced that there was going to be an expected investment of $87 billion in the coming decade. That growth was largely because of the increasing middle-class population and the growing demand from those groups for petrochemical products.
Currently, India consumes nearly 30 million metric tons of petrochemical products annually, and this figure is going to multiply within a few years. Valued at about $220 billion, the sector is expected to reach $300 billion by 2025. Experts feel that by 2040, the market can nearly triple its size and could even touch the incredible $1 trillion mark.
Mr. Puri of India Chem underlined that nexus between the rising middle class and the ratcheted up demand for petrochemicals. He said per capita petrochemical consumption in India continues to remain much lower compared with advanced nations, thus holding much opportunities to invest into it. Countries like India, China, and the Middle East are heavily investing in developing their petrochemical production capabilities.
In companies like ONGC and BPCL that fall in the public sector, investments are being increased to place alongside private sector players like Haldia Petrochemicals. The latter is expected to pump in around $45 billion. Such large-scale investments reaffirm the future of this sector with regard to growth. The government wants to bring in $100 billion in investment to help boost this industry, besides promoting clean energy schemes to limit carbon emissions.
Puri said India's petrochemical production will increase to 46 million tons by 2030 from 29.62 million tons in 2023. It also aims at strengthening FDI in the sector with ₹10 lakh crore investment planned for the next five years. While this strategic push has focused on increasing production, it is also geared towards setting up plastic parks and textile parks to drive growth in the petrochemicals domain.
As the demand for petrochemicals is on an increasing trend, India, therefore, is well-placed to emerge as one of the leading global players in this market.
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