The petrochemicals sector in India provides a direct investment opportunity of over $30 billion which will cascade into downstream sectors — adding about 150 basis points to Gross Domestic Product (GDP) and generating more than 100,000 jobs over the next decade, according to Kearney.
Also, India will drive over 10 per cent of the world’s growth in petrochemicals over this period and will need to set up one cracker every year until 2035 to meet domestic demand, the global consultancy firm said in a report published today.
“India has emerged as one of the world’s most attractive markets for petrochemicals investments,” said Sudeep Maheshwari, a principal in Kearney’s Energy and Process Industries Practice. “We see the COVID crisis as a short-term hiccup. The long-term fundamentals remain intact, thanks to underpenetrated markets.”
He added India is likely to benefit from a low crude outlook, which will improve domestic manufacturing competitiveness and the global supply chain reorganization is likely to spur demand for specialty chemicals out of India in the coming decade, which in turn will drive demand for petrochemicals.
The new report, “Riding India’s Petrochemicals Wave”, examines the state of India’s petrochemicals sector, the domestic and global trends shaping it, and the imperatives for stakeholders to succeed.