India’s Chemical, Petrochemical Sectors Set to Benefit from Booming Economy, Growing Customer Base
In a recent article for Valve World India, Industrial Info's Shaheen Chohan and Anurag Agrawal look at how India's rapid economic growth is benefiting its chemical and petrochemical sectors.
Although these sectors only contribute a small percentage to India's overall GDP, Industrial Info's project database shows more than $50 billion in active projects in the country's Chemical Processing Industry. Ag Chemicals projects alone account for $24.5 billion, with the majority of new plants in this segment set to produce phosphatic fertilizers.
India does not have an established history in the petrochemical sector, but Chohan and Agrawal note that companies there are now investing heavily in "basic petrochemical building blocks – ethylene, propylene, C4 chemicals, and aromatics," to feed a growing
demand for polymers. Industrial Info's database is tracking nine operational and five planned ethylene units, as well as five operational propylene units, as part of more than $16 billion in active petrochemical projects.
India does have a well-established petroleum-refining infrastructure, and about $6 billion of these petrochemical projects are being built adjacent to existing refineries.
Chohan and Agrawal note that India is the world’s fourth-largest consumer of polymers and the fourth-largest producer of agricultural chemicals, with investments in the industry expected to hit about $200 billion by 2020. They also write that the government is hoping to loosen up restrictions and regulations surrounding the chemical and petrochemical sectors, which have hindered investment in decades past. Legislators have successfully pushed for an easier approval process and increased foreign-direct investment; many also are supporting anti-dumping duties on imports from China, Europe, Singapore, Malaysia and the U.S.
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