Demand and Future of petrochemicals inIndia is heading towards further growth. The growth statistics of theIndian GDP have been remarkable in the fiscal year 2006-07 which is at 9.4%. The foreign exchange reserves have surged ahead to USD 200 billion to which Petrochemical investments contributed significantly.
- Food preservation
- Equipments in office
Foreign investments are also being made in the petrochemical industry ofIndia enabling great future prospects in the foreign trade of petrochemicals inIndia. With the rise in demand for petrochemicals inIndia, many barriers to the growth of petrochemicals inIndia have been decreasing during last few years and currentlyIndia is keen on investments in foreign technology for the manufacturing of various petrochemical products.
Mega chemical hubs are coming up with view to increasing foreign investments in theIndian petrochemicals market. The West Bengal state Government for instance, has worked out a new system for setting up five zones in this sector which is expected to bring in investments amounting to USD 17.4 billion. Other such places include Gujarat, Orissa, and Karnataka.
Currently, the size of the petrochemical industry has an estimated turnover of ` 450 billion. The following products are in high demand:
- Polyvinyl chloride
- Synthetic fibers and rubber
- Jet fuel like, kerosene-fuel type
- Olefin - ethylene
The leaders in this field are Reliance Industries andIndian Petrochemicals Corporation Limited. Both have contributed as much as 65% share in the production of petrochemical crackers. After these, Haldia Petrochemicals and Gas Authority ofIndia deserve to be mentioned. Globally, there is high demand forIndian Petrochemicals and the benefits have been enjoyed by the domestic market since 2004.
However, the rising demands for petrochemicals could have been better if the following hindrances could be taken care of:
- The pricing of petrochemicals
- Increase in use of recycled plastic
- Slow industrial growth of downstream plastic
Demand and future of Petrochemicals inIndia is also subject to the rising productions from neighboring countries like China and Middle East. The future outlook of this industry however, can be seen at a growth rate of 15 percent per annum. It is expected that the supply of Petrochemicals will surpass the demand for related products.
Last Updated on 13 December 2011