India is positioning itself for a petrochemical boom, with $87 billion expected over the next decade to meet surging demand. As more of its citizens rise into the middle class, the need for petrochemical-based products—from plastics to fertilizers—is set to soar. According to India’s oil minister, Hardeep Singh Puri, this growing demand opens a window for significant investment as India’s per capita consumption of petrochemicals continues to lag behind developed nations.
India currently consumes between 25 to 30 million metric tons of petrochemical products annually, and the sector, valued at $220 billion, is forecasted to grow to $300 billion by 2025. Puri emphasized that as India’s economy expands, the country will need to ramp up its domestic petrochemical production to keep pace with the demand. This expansion will also align with India’s broader goal of transitioning to a lower-carbon economy while maintaining energy security.
State-run and private oil companies, such as Nayara Energy, Haldia Petrochemicals, and ONGC, are already stepping up. These firms have collectively committed $45 billion toward boosting production, with more investments anticipated. ONGC, for its part, said in September that it was assessing plans for an $8.3 billion refinery plus petrochemicals project.
India’s domestic petrochemical production is projected to increase from 29.6 million tons today to 46 million tons by 2030.
This growing sector is key to oil companies’ survival as global demand for traditional transport fuels faces potential declines due to electric vehicle (EV) adoption and improved fuel efficiency. With a 22% increase in refining capacity expected over the next five years, Indian refiners are racing to meet the demand for both fuel and petrochemicals, making the sector a crucial lifeline for Big Oil in the future.
