While India has no dearth of both manpower and brain power, what we need is a thriving environment to make India a destination for manufacturing chemicals and petrochemicals, says Mansukh Mandaviya, Union Minister for Health and Family Welfare, Chemicals & Fertilizers speaking at the inaugural session of the second edition of Summit on “India: Global Chemicals & Petrochemicals Manufacturing Hub” 2021. 

"In this direction, the government is ready for reforms that would help industry to move forward. The government after listening to the Indian scientists provided them the much needed atmosphere for quick vaccine research which has reaped during the pandemic. Multiple initiatives like PLI scheme, reforms in corporate tax regime, support to MSME sector etc. are helping the domestic industries in ramping up their production and also attracting the global brands; thus making the manufacturing more attractive in the country. Government is taking continuous feedback from stakeholders and improving its policies," said Mandaviya.

“The chemicals and petrochemicals industry must work on new environmentally friendly chemicals, minimizing the hazardous effects. Zero pollution technologies can create huge value addition. We need R&D for solutions to pollution and ensuring zero discharge,” added Mandaviya while emphasizing that stakeholders must come together to also boost R&D and innovation in the country.

Bhagwanth Khuba, Union Minister of State, Ministry of Chemicals & fertilizers and Minister of State, Ministry of New & Renewable Energy spoke on the need indigenous production, better R&D and innovation to make India a preferred destination for investment worldwide.

“In the post Covid world, India has the potential to be a big hub for chemicals and petrochemicals. World leaders are looking positively at the country as a potential investment destination. Industry and government have to together take steps to tap new opportunities. Due to the establishment of PCPIRs in Orissa, Tamil Nadu, Andhra Pradesh, and Gujarat, about 4 lakh people will get employment. We will soon set up pharma parks and plastic parks. We are taking steps to ensure these industries become major contributors to the growth. Government of India has relaxed the customs and ensured tax rebates to chemicals and petrochemicals sector. Ease of doing business and the feel good factor has improved in the last 7 years,” added Khuba.

"The Indian chemicals and petrochemicals sector is expected to reach US $300 billion by 2025. As the sector plays a significant role in enabling the growth of the Indian economy, we need to build a competitive landscape through quick investments. To address the huge demand for petrochemicals across the globe, countries like China and Vietnam are establishing naphtha cracker plants. To remain competitive, India too needs a sense of urgency in increasing investments for building such plants. While the government has taken many initiatives such as the PLI scheme, labor law simplification etc. for ease of doing business, there are pending issues that too can be resolved easily,” said Prabh Das, Chairman, FICCI Petrochemicals Committee and MD & CEO, HMEL Mittal Limited. 

“We have a deep appreciation of the forthcoming attitude of the industry during COVID-19. The joining of hands between industry and government facilitated quick production of PPE and medical oxygen during the pandemic. Despite the pandemic hassles, the US $300 billion industry by 2025 is quite achievable. While there are US $16-17 billion ongoing investments, reports suggest that an estimated

US $107.5 billion investments are lined up. India stands at a higher place in Southeast Asia just below China. Overall ease of doing business has seen improvements within the chemicals and petrochemical sectors. Feedstock access, cost factor and skilled labor are few key factors,” said Yogendra Tripathi, Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals and Fertilizers.

“Eight months ago, we said that the year 2021 will be the year of chemicals and India will certainly make a big difference. I would call it a year of disruption for the chemical industry. Not just vaccines or agrochemicals, the entire value chain is interlinked. If something happens to the coal industry, it affects all. Therefore, emphasizing on the strengthening of the value chain is a step in the right direction. The policies of self-dependency have propelled us towards more opportunities and we are hopeful of the continuous support from the government on this,” commented Deepak C. Mehta, Chairman, FICCI National Chemical Committee and Chairman and Managing Director, Deepak Nitrite Limited.