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Indian chemicals and petrochemicals industry likely to reach $1 trillion by 2040; Sustainability is the future: JP Nadda
Oct 17, 2024
Gujarat, Odisha, and Madhya Pradesh lead India's push toward innovation and sustainability in chemicals, positioning India as a global industry leader.
MUMBAI: 17 October 2024: Mr Jagat Prakash Nadda, Minister for Health & Family Welfare and Chemicals & Fertilizers, Govt of India emphasized the chemical and petrochemical industry's critical role in India’s economy. “India’s chemical and petrochemical industry is projected to surpass $300 billion by 2028 and is on track to reach $1 trillion by 2040. With the Make in India initiative and our commitment towards sustainability, we are reducing reliance on imports and fostering innovation. Together, under Prime Minister Modi's leadership, we will create a sustainable and prosperous future for this vital sector,” he said.
Addressing the ‘India Chem 2024’, organized by the Ministry of Chemicals & Fertilizers, Govt of India, jointly with FICCI, Mr Nadda added that the growing Indian middle class will further boost the expansion of the Indian chemicals and petrochemicals.
Mr Nadda stressed the importance of reducing reliance on imported feedstocks and focusing on alternative feed stocks like biomass, plastic waste, and green hydrogen. He reiterated India's commitment to sustainability, with companies adopting renewable energy and recycling practices, ensuring that India leads the global shift toward greener technologies.
Mr Bhupendra Rajnikant Patel, Chief Minister of Gujarat, remarked on Gujarat’s leadership in exports of chemicals and petrochemicals. “Together, we will harness our strengths to establish India as a leading destination for the chemical industry, fostering collaboration and excellence for a prosperous future,” he added.
Mr Mohan Charan Majhi, Chief Minister of Odisha, highlighted Odisha’s strategic position as a rising hub for the chemical industry. "Odisha is fast becoming a global leader in the chemical and petrochemical industries, fueled by its rich natural resources, strategic connectivity, and investor-friendly policies like IPR 2022. The state boasts strong infrastructure, including key ports, and a highly skilled workforce, offering outstanding incentives for investors. We invite industry leaders and investors to discover the vast opportunities Odisha presents. Our focus on initiatives like the GO SWIFT platform and sustainable practices reflects our dedication to industrial excellence and innovation."
Mr Mohan Yadav, Chief Minister of Madhya Pradesh, while speaking about Madhya Pradesh’s leadership in the sector said that the state government is working to promote the petrochemical and chemical sector in Madhya Pradesh. The conducive policy framework and necessary infrastructure, the sector is making a significant contribution in state’s economy. The government has planned to bring an attractive pharma policy to promote this sector, so that industries develop here and employment opportunities are created, he added.
Ms Anupriya Patel, Hon’ble Minister of State for Health and Family Welfare and Chemicals & Fertilizers, underlined the global relevance of India Chem 2024, which features participants from 22 countries and over 200 exhibitors. “India is set to become a global hub for chemicals and petrochemicals, driven by favorable policies and a skilled workforce. Contributing nearly 8% to our manufacturing output, the sector is expected to grow from $220 billion to $1 trillion by 2040, with a focus on sustainability through green chemistry and circular economy practices.”
Ms Nivedita Shukla Verma, Secretary, Department of Chemicals & Petrochemicals, Govt of India said, “India Chem 2024 has developed into one of the key events in this sector, bringing together industry leaders, policymakers, researchers, and innovators from across the globe and fostering an environment where ideas are exchanged, partnerships are forged, and new possibilities are explored.”
Mr Deepak Mehta, Chairman, FICCI National Chemical Committee and CMD, Deepak Nitrite Ltd. said, “India is at a pivotal point of growth, with the chemical industry set to expand significantly. Prime Minister Narendra Modi’s leadership is driving a transformation akin to China’s growth in the 1980s. We are shaping India’s rise to become the world’s third-largest economy by building world-class infrastructure and attracting global investment.”
Dr Claus Rettig, Member of the Extended Executive Board of Evonik Industries AG & President, Asia Pacific said, “Asia will play a key role in reshaping global value chains. India’s renewable energy goals and ‘Make in India’ policies offer immense growth potential. At Evonik, we aim to expand significantly by 2030 and contribute to India’s green journey across sectors like pharma, nutrition, and circular plastics.”
Mr Nikhil Meswani, Executive Director, Reliance Ltd., highlighted the importance of chemicals to modern life, stating, “The chemical industry is the backbone of advancements in agriculture, electronics, and beyond. At Reliance, we are committed to achieving net carbon zero by 2035, and transforming from oil to chemicals to fuel growth. We envision Jamnagar becoming a hub for renewable energy, driving India’s leadership in sustainable chemicals.”
Mr Prabh Das, Chairman, FICCI National Petrochemicals Committee and MD & CEO, HMEL Mittal Energy Ltd. while delivering the vote of thanks said, “With our skills, expertise, and a commitment to sustainability, I am confident that India will transform its chemical and petrochemical sector into a global leader.”
FICCI & EY Knowledge Paper was released by the dignitaries during the session.