Challenges facing India Petrochemical Industry
The challenges facing India petrochemical industry provides the industry with better tools which would in turn help the growth of the economy.
India has stably established itself in the core of the international production of petrochemical and petrochemical- related products in the present scenario. With the economic growth cycle slowing down in the United States, the Asian developing nations, especiallyIndia, would ideally fortify its stand in the global petrochemical market as a producer of these products. This is one of the major challenges facingIndia petrochemical industry.
The global economy is a dynamic and ever-growing one in spite of the high cost of energy. This in turn is forging the demand for petrochemicals. The strong growth in demand is not backed by a sufficient supply so the cost is still to come down. Operating rates of major petrochemical product segments are very high presently.
In theIndian economy, the petrochemical sector is one of the fastest growing segments which and has a growth rate of around 13% which currently is more than twice the gross domestic product growth. The investments made in theIndia petrochemical industry are huge which bode well for the growth in this segment.
There is a steadfast growth in the production activity of the main petrochemicals and as the result, theIndia petrochemical industry attained self-sufficiency. The dominant part of theIndia petrochemical industry, the segment consisting of polymers is growing at a superb pace, with the middle class household boosting the consumption.
Following are the challenges facingIndia petrochemical industry:
- High cost of energy and feedstock and the impact on demand
- The transformation in the kinetics of competition in manufacturing
- Increase in the cost of project
Problems faced by theIndia petrochemical industry:
- The manufacturing units mostly use obsolete format of technology and are not able produce optimally
- There is a necessity for the modernization of equipments
- Excise duty on synthetic fiber should be rationalized
- Prevention of reservation on Small Scale Units
- Plastic waste to be recycled and the littering habits to be discouraged
- India requires advantage on feedstock, so the import cost has to be brought down
- The industry should have access to the primary amenities of infrastructure
Last Updated on 13 December 2011
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