India to Attract $87 Billion in Petrochemical Investments Over Next Decade, Says Oil Minister Hardeep Singh Puri

India is set to attract $87 billion in investments in its petrochemical sector over the next decade, according to Oil Minister Hardeep Singh Puri. Speaking at the India Chem 2024 event in Mumbai on October 19, Puri emphasized the rising demand for petrochemical products driven by the country’s expanding middle class. He noted that India’s annual consumption of petrochemical products, currently at 25-30 million metric tonnes, is expected to surge, with the sector valued at $220 billion today projected to reach $300 billion by 2025 and potentially $1 trillion by 2040.

Despite India’s current per capita consumption of petrochemicals being significantly lower than that of developed nations, this gap presents a major opportunity for investment and growth. Puri also revealed that India’s petrochemical production is expected to grow from 29.62 million tonnes to 46 million tonnes by 2030 to meet rising demand.

Countries like India, China, and those in the Middle East have been increasing their domestic petrochemical production, providing momentum for decades of oil refining even as the global focus shifts towards cleaner energy sources. In India, both public sector undertakings (PSUs) such as ONGC and BPCL, along with private players like Haldia Petrochemicals, are leading this investment drive. Currently, $45 billion worth of petrochemical projects are already in the pipeline, with an additional $100 billion anticipated to meet future demand, helping the country transition to a lower-carbon future.

Puri also pointed to supportive government policies aimed at fostering growth in the petrochemical sector. These include the development of Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs), Plastic Parks, and Textile Parks, alongside the facilitation of 100% Foreign Direct Investment (FDI) through automatic routes. Under the new PCPIR Policy 2020-35, the government has set a target of attracting investments worth Rs 10 lakh crore (around $142 billion) by 2025.

With this robust foundation and strong policy support, Puri stressed that India has the potential to emerge as a global hub for chemicals manufacturing in the coming years.