A new study released by the Associated Chambers of Commerce & Industry of India (Assocham), entitled ‘Indian Petrochemical Industry: An Overview’, revealed that the country’s petrochemical industry is likely to reach US$100 billion by 2020. The sector is currently valued at around US$40 billion.
"[The] petrochemicals sector is one of the fastest growing segments with a growth rate of 13%, which is more than twice of growth of India's gross domestic product, and also the global growth rate in petrochemical space, which is stagnant at 6%," said DS Rawat, Secretary General, Assocham.
According to the study, petrochemicals currently contribute approximately 30% to India’s US$120 billion chemical industry, which is expected to grow by 11% over the next few years. On a global scale, petrochemicals account for around 40% of the chemicals sector, while in India this figure is approximately 25 – 30%.
“Polymers, which is the dominant part of Indian petrochemical industry is growing at a superb pace, with the middle class boosting consumption. It annually contributes over Rs.8000 crore by way of taxes and duties to the national exchequer,” said Rawat.
According to the study, the domestic petrochemical industry is in the process of investing over US$25 billion to meet increasing demand and overcome problems of infrastructure, power, water availability, etc.
Edited from various sources by Rosalie Starling