SME Times News Bureau | 12 Nov, 2019
Minister of Chemicals and
Fertilizers D.V. Sadananda Gowda said on Monday that the Indian chemicals and
petrochemicals sector has a significant potential to help India reach its goal
of a $5 trillion economy by 2025.
He indicated that the sector
is expected to grow at a CAGR of 9.3%, from a $163 billion to $304 billion
market by 2025.
Speaking at the 'Summit
on Global Chemicals and Petrochemicals Manufacturing Hubs in India 2019',
organized by FICCI, in association with the Ministry of Chemicals and Fertilizers,
Government of India, Gowda said, "The Indian chemical and
petrochemical industry is currently witnessing a rapid expansion. The untapped
potential of this industry, which holds the power to bring a revolution in the
country, needs to be addressed."
Gowda added that the
rapid growth in the sector will help India to become the global leaders in
petrochemicals and emerge as the world?s next manufacturing hub.
P Raghavendra Rao, Secretary,
Chemicals and Petrochemicals, Ministry of Chemicals and Fertilizers, GoI, said,
"With strong growth drivers, the Indian chemicals and petrochemicals
industry is projected to grow much faster than the global industry."
Deepak C. Mehta, Chairman,
FICCI Chemical Industry Committee, said, "The Indian chemical and
petrochemical industry is an integral part of the Indian economy and possesses
huge unrealized potential to strengthen the Indian economy."
Mehta added, "The
government's initiative towards successful implementation of Petroleum,
Chemicals and Petrochemicals Investment Regions (PCPIRs), and shoring up
existing infrastructure to a world-class level is truly commendable."
Prabh Das, Chair, FICCI
Plastics and Petrochemicals Industry Committee, delivered the vote of thanks to
conclude the inaugural session.
The summit witnessed the
launch of the FICCI-Mott MacDonald 'Petroleum, Chemicals and
Petrochemicals Investment Regions (PCPIR) Rejuvenation Study'. The study
highlights the continuous development of PCPIRs, and the government's roadmap
for rejuvenating investment in PCPIRs.
The study points out that
India is the sixth-largest producer of chemicals in the world and contributes
3.4% to the global chemical industry.
The chemicals market in India
has grown at 3% over the past decade. The industry comprises 13.38% of
manufacturing GVA and 2.39% of national GVA which employs about 2 million
The Government adopted a
policy in 2007 to set up PCPIRs. Currently, there are four identified regions -
Dahej (Gujarat), Visakhapatnam (Andhra Pradesh), Paradip (Odisha) and Cuddalore
However, due to a wide range
of issues ranging from overall infrastructure development to project financing,
attracting investments to Visakhapatnam, Paradip and Cuddalore have been relatively
challenging in comparison to those to Dahej.