The petrochemical industry is a cornerstone of India’s economic development, supporting critical downstream sectors like plastics, textiles, and automobiles. Despite its Rs. 19,04,760 crore (US$ 220 billion) market size and 6% contribution to Gross Domestic Product, India remains a net importer of petrochemicals, relying on imports for 45% of its intermediates. With over Rs. 10,73,592 crore (US$ 124 billion) in planned investments, measures such as tariff rationalization, infrastructure development, and production-linked incentives (PLI) are key to reducing import dependency and enhancing domestic manufacturing competitiveness.
To achieve self-reliance in this sector, India must prioritize innovation through Research and Development, leveraging advanced technologies like Artificial Intelligence (AI) and high-performance computing to develop cost-effective and sustainable production methods. Enhancing manufacturing infrastructure, creating petrochemical clusters, and revisiting duty structures will also be critical to supporting domestic capacity and fostering economic growth. By addressing these challenges and opportunities, the petrochemical sector can drive India’s journey towards Atmanirbhar Bharat, emerging as a global manufacturing powerhouse.
Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.