India’s chemical industry is experiencing significant growth, solidifying its position in the global market. The sector, currently valued at $220 billion, is projected to reach $300 billion by 2025, driven by increased demand for petrochemical products and strategic investments.
State-owned enterprises are leading this expansion. Bharat Petroleum Corporation Limited (BPCL) plans to boost its refining capacity from 35.3 million tons per year (tpy) to 45 million tpy by 2028, with significant upgrades to its Kochi, Mumbai, and Bina refineries.
Additionally, BPCL is exploring the construction of a new refinery in Andhra Pradesh or Uttar Pradesh, aiming to meet the rising energy demand and enhance petrochemical production.
The Indian government is actively promoting the sector’s growth through initiatives like 100% Foreign Direct Investment (FDI) under the automatic route, bolstering investor confidence and facilitating expansion.
However, challenges persist. For instance, BASF India reported a 14.2% decline in net profit for the second quarter of 2024, attributed to increased input costs amid geopolitical tensions in the Middle East.
Despite these hurdles, India’s chemical industry is poised for robust growth, with substantial investments and policy support enhancing its global presence.
