Smt. Nirmala Sitharaman, the Union Minister of Finance and Corporate Affairs, officiated at the opening of the third edition of the summit on “Global Chemicals and Petrochemicals Manufacturing Hubs in India” (GCPMH 2023) in New Delhi. The Federation of Indian Chambers of Commerce and Industry (FICCI) and the Department of Chemicals and Petrochemicals of the Ministry of Chemicals and Fertilisers jointly organised the event.
Smt. Nirmala Sitharaman stressed the summit’s focus on the huge potential of India’s chemical and petrochemical industry, which has a substantial impact on a number of other sectors like agriculture, infrastructure, textiles, pharma, and packaging. There are more than 80,000 chemical items in this industry.
The Finance Minister also emphasised India’s targets of 2047 energy independence and 2070 net-zero emissions. The emphasis is on encouraging green growth and lowering carbon intensity in order to meet these goals. Major chemical and petrochemical exports totaled $9 billion in 2022–2023; nevertheless, imports rose to $13.33 billion, showing room for self-sufficiency and potential for local production.
The market for specialty chemicals was found to be expanding quickly, with a Compound Annual Growth Rate (CAGR) of 12%. Due to the nation’s excellent process engineering capabilities, low-cost manufacturing capabilities, and ample workforce, the government seeks to give comprehensive support for specialised chemicals in order to promote this market and further strengthen the industry.
The government’s initiatives to build chemical parks across the nation and the current process of setting up plastic parks were mentioned by Shri Bhagwanth Khuba, the Minister of State for Chemicals and Fertilisers. Through the creation of Centres of Excellence and a focus on industrial skill development, the government is also boosting partnership between business and academia.
According to Shri Pratap Keshari Deb, the state of Odisha is seeing an 8% domestic growth in the chemicals sector. He is the minister of industries, MSME, and energy for the government of Odisha. Over the next ten years, Odisha will need to raise capacity by 40% in order to maintain this growth. The state’s Industrial Policy Resolution, 2022, includes elements including tax reductions for manufacturing facilities and electrical duty exemptions in an effort to be business-friendly.
As a result of policy changes and rising demand, Shri Arun Baroka, Secretary of the Department of Chemicals and Petrochemicals, stated that India is on track for significant growth in the chemicals and petrochemicals sector. He predicted that the chemicals sector would reach USD 1 trillion by 2047 if India keeps up its current growth rate. The creation of four Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) and the projected Chemical Parks are additional factors aiding the sector’s expansion.
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