New Delhi: The market size of the Indian chemicals and petrochemicals sector is expected to grow to approximately $300 billion by 2025, up from its current market size of $220 billion, Union Petroleum Minister Hardeep Singh Puri said on Friday. 

Addressing the ‘Roundtable on Petrochemical’ during the ‘India Chem 2024’, the minister said the demand for chemicals is predicted to nearly triple and the petrochemicals industry in India may reach $1 trillion by 2040.

The chemical industry plays a crucial role in India's economy, contributing around 6 per cent to the GDP and generating employment for over 5 million people.

"The petrochemical sector in India is projected to attract investments exceeding $87 billion in the next decade, representing over 10 per cent 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," the minister emphasised.

With annual consumption between 25 to 30 million tonnes, India stands as Asia's third-largest economy, exhibiting a per capita consumption significantly lower than developed nations and presents ample opportunities for demand growth and investment.

As the sixth-largest chemicals producer globally and third in Asia, India exports chemicals to over 175 countries, accounting for 15 per cent of its total exports.

Minister Puri emphasised that chemicals and petrochemicals will drive global oil demand growth, with India’s integrated petrochemical capacity linked closely to its expanding refining capabilities.

"Projections indicate an increase from 257 MMTPA to 310 MMTPA by 2028, enhancing cost competitiveness," the minister told the gathering.

In the address, the minister spoke about a substantial rise in India’s petrochemical capacity, projected to increase from approximately 29.62 million tonnes to 46 million tonnes by 2030. 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. An additional $100 billion is projected to meet rising demand, aligning with India’s transition to a lower-carbon future.

In the address, the Minister also spoke about a substantial rise in India’s petrochemical capacity, projected to increase from approximately 29.62 million tonnes to 46 million tonnes by 2030.

(IANS)