Foreign Trade in Petrochemicals entered a stage of significant growth in 2007 and is doing well to bring in more Foreign Direct Investments in the country as well.
Petrochemical industry is growing day by day with the increase in trade with foreign countries. In 2006, the main regions for setting up petrochemicals units included Andhra Pradesh, Gujarat, West Bengal, Orissa, and Karnataka. These units will be used for enhancing foreign trade.
Currently, the petrochemical industry is rapidly increasing due to the trade with foreign countries. The chief petrochemical items manufactured for trade include distilled crude oil, naphtha, petroleum gases, kerosene, gas oil, ethane, natural gas liquids, and propane.
The petrochemical industry has contributed largely to the manufacturing sector of the country through foreign trade in petrochemicals. The major sectors of the petrochemical industry in which foreign companies are investing in are enlisted as follows:
- Synthetic fiber/yarn
- Synthetic detergent intermediates
- Synthetic Rubber
- Plastic processing industry
- Performance plastics
The foreign investments in petrochemicals products and the activities related to that are subject to RBI automatic approval route. However, the following are the exceptions in this regard:
More than 24% investment in the equity capital of units manufacturing items reserved for small scale industries
- Press Note No. 18 dated 14.12.1998 of 1998 series rules will apply for oldIndian ventures.
- Foreign investors that need to acquire existing shares inIndian company
The future items for foreign trade in petrochemicals could include technical textiles, acrylic fibers, yarn, and polyester fibers. Thus, there is tremendous growth potential in foreign trade for petrochemicals.
Last Updated on 13 December 2011