Mumbai: The Indian chemicals and petrochemicals sector has a significant potential to help India reach its goal of $5 trillion by 2025, stated Union Minister of Chemicals & Fertilizers, Shri D.V. Sadananda Gowda while inaugurating the ‘Summit on Global Chemicals & Petrochemicals Manufacturing Hubs in India 2019’ in Mumbai today (November 11, 2019). Noting that this industry is currently witnessing a rapid expansion in India, Shri Gowda further stated, the current growth of the petrochemicals industry can be further accelerated with a mix of policy changes and right coordination. The Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR) Rejuvenation Study, which is a joint endeavour of the Union Ministry of Chemicals & Fertilizers and the Federation of Indian Chambers of Commerce & Industry (FICCI) was launched on the occasion. This study highlights the continuous development of PCPIR, its current scenario and Union Government’s roadmap for policy interventions to rejuvenate investment in PCPIRs.
Speaking on the occasion, the Minister said, untapped potential of chemicals & petrochemicals industry needs to be addressed. Stating that the chemicals & petrochemicals industry plays an extraordinary role in shaping the other industries of the country and also holds the power to bring a revolution in the country, the Minister mentioned, this industry is expected to grow at a CAGR of 9.3% from USD 163 billion to USD 304 billion market by 2025. This emphasizes the important role chemical and petro-chemicals industry can play in the growth of Indian economy to become the global leaders in petrochemicals and emerge itself as world’s next manufacturing hub, the Minister further said.
Shri P. Raghavendra Rao, Secretary, Union Ministry of Chemicals and Fertilizers, who was also present amongst the dignitaries, stated that with strong growth drivers, the Indian chemicals and petrochemicals industry is projected to grow much faster than the global industry.
Shri Deepak C. Mehta, Chairman of FICCI Chemical Industry Committee, commented on the significance of launching the PCPIR Report. He said, with changes happening across the market, vital changes are happening in the country’s approach as it looks at how it will do its business in the future.
Notably, the Union Government had adopted a policy in 2007 to set up Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIR). Currently there are four identified regions – Dahej (Gujarat), Vishakhapatnam (Andhra Pradesh), Paradip (Odisha) and Cuddalore (Tamil Nadu). However, due to a wide range of issues (ranging from overall infrastructure development to project financing), attracting investment to Vishakhapatnam, Paradip and Cuddalore has been relatively challenging in comparison to Dahej. Considering the overall scenario, the Government has now planned for policy interventions to rejuvenate investment in PCPIRs.