India’s petrochemical sector is entering a transformative phase. With its role in downstream industries like textiles, plastics, automotive, and pharmaceuticals, petrochemicals are key to India’s industrial growth and global competitiveness. The FICCI Chemicals & Petrochemicals Committee is actively shaping this transition by facilitating policy dialogue, innovation, and sustainable practices.
Strong Demand Outlook Petrochemical consumption in India is expected to grow at over 7.5% CAGR through 2030, driven by rising demand for polymers, specialty chemicals, and intermediates. FICCI’s projections highlight strong growth across sectors such as packaging, infrastructure, agriculture, and FMCG.
Infrastructure Development and Clustering FICCI is working closely with central and state governments to promote petrochemical clusters. These integrated hubs, like those planned in Dahej and Paradeep, aim to improve logistics, reduce input costs, and create economies of scale. The committee has advocated for plug-and-play facilities to accelerate time-to-market for new entrants.
Feedstock Diversification and Security India currently relies on crude-derived naphtha and imported LNG for much of its feedstock. FICCI is pushing for diversification through shale gas partnerships, biomass-derived feedstocks, and waste-to-chemical conversion technologies. These efforts aim to reduce import dependency and enhance resilience.
Sustainability in Focus Recognizing environmental concerns, FICCI is promoting investments in recycling and green petrochemicals. It has proposed frameworks for chemical recycling, circular polymers, and extended producer responsibility (EPR) in plastics. Industry members are also exploring bio-based polymers to reduce lifecycle emissions.
Capacity Building and Innovation FICCI facilitates skill development programs in partnership with academic institutions to train engineers and operators for emerging technologies. It also hosts innovation showcases where startups present breakthroughs in catalysis, advanced materials, and low-carbon manufacturing.
Looking Ahead With demand set to rise, and climate regulations becoming stricter, the petrochemical sector must evolve. FICCI’s collaborative and forward-thinking approach will be critical in ensuring sustainable growth, domestic self-reliance, and global market integration.
