The Indian petrochemicals industry is likely to touch $100 billion by 2020 from $40 billion presently after having grown at around 13-14 per cent, according to a study by industry body Assocham released here on Friday.
The study, titled ‘Indian Petrochemical Industry: An Overview’, noted that the domestic sector had been growing faster than a stagnant global growth rate of 6 per cent.
Petrochemicals currently contribute about 30 per cent to India’s $120 billion chemical industry which is likely to grow at 11 per cent over the next few years. Globally, the contribution of petrochemicals to the chemicals sector is 40 per cent, while in India it accounts for around 25-30 per cent.
“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. 8,000 crore by way of taxes and duties to the national exchequer,” said DS Rawat, Secretary General, Assocham.
The industry comprises olefins, ethane, propane, aromatic compounds like benzene, toluene, intermediate petrochemicals, end products, polymers, synthetic fibres and rubber, the study noted.
“India stands a good chance in providing a lucrative market to the world as the trend in the global petrochemicals market has shifted to the Middle-East and Asia from the West,” he added.
The country’s per capita consumption of polymers, at 5.2 kg, is still in a nascent stage as compared to developed markets like the US and China which is about 30 kg. India’s total consumption of polymers is about 6.2 million tonnes (mt), around 3 per cent of global consumption of 200 mt.
“The domestic petrochemical industry is in the process of investing over $25 billion to meet surging demand and overcome problems of infrastructure, power, water availability etc. PCPIRs will greatly motivate the companies to invest them,” the study highlighted.