Petrochemicals Market in India 2024 - 2028

Petrochemicals Market in India 2024 ─ 2028

Market insights:

The petrochemicals market in India stands as a pivotal sector within the nation's industrial landscape, serving as a cornerstone for economic growth and industrial development. India's burgeoning petrochemicals industry has witnessed robust growth in recent years, driven by a confluence of factors including rapid urbanization, increasing disposable income, and rapid demand across diverse end-user segments such as packaging, automotive, construction, and textiles.

The government's proactive stance in fostering a conducive regulatory environment, coupled with strategic policy initiatives and investments in infrastructure, has been instrumental in fostering a favorable ecosystem for market expansion and investment inflows. Through initiatives such as the Make in India campaign and progressive policy frameworks such as Hydrocarbon vision of 2030 aims at promoting domestic manufacturing and attracting foreign investment, the government has endeavored to bolster the competitiveness and resilience of the petrochemicals sector.

Moreover, strategic partnerships and collaborations with key industry stakeholders, both domestic and international, have facilitated technology transfer, innovation, and skill development, thereby enhancing the industry's global competitiveness and sustainability quotient. In terms of volume, the petrochemicals market was valued at 47.82 Mn tons in FY 2023 and is expected to reach 59.71 Mn tons in FY 2028 expanding at a CAGR of 4.60 % during the FY 2024 – FY 2028 forecast period.

Growth opportunities:

Unlike other industries, resiliency of the petrochemicals industry in India during post COVID days in early 2023 led to strengthening of petrochemical market fundamentals and thereby preceding to unique value creation. Polymer plastic products helped address several challenges during the pandemic. The consumption of healthcare products and flexible packaging for consumer goods, food and e-commerce merchandise has increased manifold, leading to rising demand for certain polymer products. Largely, the industry has seen strong demand growth in 2023 and will continue to support economic growth across the country by the end of 2030, as well as noteworthy momentum to aid the circular economy through plastics recycling and sustainability.

Both domestic public and private oil companies in India have firmed up their petrochemical capacity investment plans with a hope to reduce significant import dependence and cater to high demand growth for polymer products.