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 people.

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 (Tamil Nadu).

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.