Indian petrochemical industry, one of the fastest growing sectors: Study

The Indian Petrochemical industry is growing at a growth rate of 13%, which is more than twice that of India’s Gross Domestic Product (GDP) and the global growth rate in the petrochemical space, said an Assocham study.

The Dollar Business Bureau Petrochemicals Growing at a Compounded Annual Growth Rate (CAGR) of about 14%, the Indian petro-chemical industry will likely grow into a US$ 100 billion industry by 2020 from the current US$ 40 billion level. This was stated by the Associated Chamber of Commerce & Industry (ASSOCHAM) in its study report titled- ‘Indian Petrochemical Industry: An overview’. The contribution of Petrochemicals to the Indian Chemical industry currently stands at 30%, the report said, adding the US$ 120 billion worth Indian chemical industry will also grow at a CAGR of 11% over the next few years and is likely to reach US$ 250 billion mark by 2020. The study prepared by the Energy Division of ASSOCHAM further stated that the Petrochemicals industry is one of the fastest growing sectors growing at a growth rate of 13%, which is more than twice of growth of India’s GDP and the global growth rate in the petrochemical space. India’s Petrochemical industry is in the process of investing over US$ 25 billion to meet the surging demand, besides overcoming the broad problems of infrastructure, power, water availability and others, the study reported. The study further noted that securing feedstock, mergers and acquisitions are currently the key areas for the petrochemical industry in India. Besides this, there are also opportunities in segments like specialty chemicals and polymers, which are imperative to realize the growth potential of the Indian Petrochemicals industry, the report added. Speaking at the meet, the R S Rawat, president, ASSOCHAM, said, “Huge investments made in the petrochemical space augur well for the growth of this segment, besides there is a steadfast growth in the production activity of the main petrochemicals.” The ASSOCHAM president further said the Polymers, which hold the dominant share of Indian petrochemical industry, are growing at a superb pace because of increasing consumption by the middle class and annually contribute around Rs 8,000 crores by way of taxes and duties, to the national exchequer. India’s consumption of Polymers is still at the starting stage compared to the US and China, Rawat said, adding that the increase in reach-out and the stable economic growth will boost India’s polymer consumption.