This is the best time for investment in the Chemicals and Petrochemical industry in India: Chemical Minister Dr. Mandaviya

This is the best time for investment in the Chemicals and Petrochemical industry in India: Chemical Minister Dr. Mandaviya

Speaking at APIC 2023, the Minister for Chemicals & Fertilizers said the PLI (Production Linked Incentive) scheme for chemicals is also being planned for strategic chemicals

  • By Rahul Koul | May 22, 2023

Dr. Mansukh Mandaviya, Minister for Chemicals & Fertilizers, Government of India has urged the petrochemical industry for bigger and better participation in strengthening the cause of sustainability. 

“I would request the industry to work proactively towards increasing R&D investments. It is not just government policies but industry participation also is very important. We need to strengthen the partnership regime. The industry should learn to manage the petrochemicals in a responsible manner through reuse and recycling. Petrochemicals have the future only if they become sustainable. It is the responsibility of all stakeholders to focus on sustainability,” said Mandaviya.

Mandaviya was speaking at the Asia Petrochemical Industry Conference 2023 (APIC 2023) in New Delhi on May 19, 2023. Themed ‘Ushering in a Sustainable Future,’ the event was attended by leading chemicals and petrochemicals players from India, Japan, Korea, Taiwan, Malaysia, Thailand, and Singapore besides other stakeholders including global investors and government officials.

Mandaviya urged the industry to focus on strengthening "Brand India" by working with the mantra of “Pro Planet People” and taking the lead for reduce, reuse, and recycle.

“The progress of human journey will unfold in the years to come. First is the health of people and second is the health of the planet. Both are very much interlinked. The scale of environmental challenges we face is enormous but conventional approaches cannot solve the problems. The need of the hour is to think out of the box and invest in our young researchers, entrepreneurs and academicians to work towards sustainable development,” Minister said.

He also highlighted the huge investment opportunities in India in the chemicals and petrochemicals sector.

“India is emerging as the world’s leading manufacturing hub. The Indian chemical industry has been a global out-performer in business growth. Prime Minister Narendra Modi’s India is promoting eco-friendly business and minimum government interference. The growth of India during the Amritkaal period will be Green, Clean, Sustainable, and Reliable. We have taken several measures which include the reduction in corporate tax, clear FDI policy, reduction in compliance burden, policy measures to boost manufacturing through phased manufacturing programmes to name a few. India is committed to becoming a trusted partner in the global supply chain of chemicals and petrochemicals. We have signed free trade agreements with many countries. The ability of Indians to adopt innovations and new technologies; the spirit of entrepreneurship of Indians can give energy to global partners. This is the best time for investing in the chemicals and petrochemical industry in India.”

Sharing details on government policies, Mandaviya said, “The Government is working on policies to attract investments into the sector both from domestic and global players. To address the major issue of availability of petrochemical feedstock, the government has set up PCPIR (Petrochemical Petroleum, Chemicals and Petrochemicals Investment Region) and is making necessary amendments. The PLI (Production Linked Incentive) scheme for chemicals is also being planned for strategic chemicals. India has also launched the Gati Shakti, the national master plan to bring the domestic player on the same platform for promoting holistic development. Under the national plan, work will be done on infrastructure planning, development and implementation in a phased manner. This will provide fresh impetus to seamless connectivity and movement of goods, people and services. Safe drinking water, micro-irrigation technology for efficient use of water in agriculture, road connectivity, digital India, EVs, renewable energy, affordable housing etc. Most of these sectors are among priority areas of the government. Today, India is drafting policies and making decisions for the next 25 years.”

The Minister called upon the global investors and petrochemical players to consider India for setting up their manufacturing units. On this note, he listed many positives offered by the Indian regime.

“From getting up in the morning until we sleep, the petrochemicals play a very important part in our everyday life. Realizing its importance, India offers a huge opportunity to invest in the petrochemicals industry. With a 1.5 billion population, India is a rising economy, purchasing power has increased and so have the opportunities. While our government is pro-poor and pro farmer it is also industry friendly. There is an existing ecosystem for petrochemicals in India, we have both brain power as well as manpower that can be utilized by global industries. It can fulfil the requirements of India as well as create export opportunities. India and global industries can together create a win-win situation for collaborations. They can form joint ventures if we look at this in a positive manner. World is now looking positively at India and is prioritizing India as an investment and manufacturing destination. The Modi government is working on an investment friendly environment and long-term plan for the industry. I urge you to invest and manufacture here,” added Mandaviya.

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