The Indian Petrochemicals industry is currently among the fastest-growing in the world, with a market size of around US $40 billion. It is expected to reach US $100 billion by 2025, with a CAGR of 10% from 2020 to 2025. The growth in demand is driven by various factors such as the increasing population, growing middle class, and rapid urbanization.

Over the next decade, the global Petrochemicals market will see some major shifts, and India is poised to play a major role in that change. Reliance Industries Ltd., Haldia Petrochemicals Ltd., and China Petrochemical Corporation are projected to be the top three companies globally in terms of planned and announced capacity additions by 2028. India is poised to enter what some hail as 'The golden age of India's Petrochemical industry.'

By 2028, the global Petrochemicals capacity is predicted to increase from over 2,200 mtpa in 2020 to more than 3,100 mtpa by 2030, registering a total growth of 40%. For 'planned and announced' capacity addition, at over 158 mtpa, India is expected to account for 20% of the global Petrochemicals capacity additions and almost 33% of Asian capacity, forecasts GlobalData.

India could require over 15 world-scale Petrochemicals assets by 2035 to fulfill its domestic demand. There are other anticipated developments which are projected to attract investments running in lakhs of crores to create the self-sufficiency that the government wants to build. In terms of existing volume, the Petrochemicals market in India stood at 42.50 mtpa and is estimated to reach 49.62 mtpa by 2025, growing at 6.14 per cent CAGR between FY 2021 and FY 2025.

So, what would it take for the Indian Petrochemicals industry and the stakeholders to successfully ride the Petrochemicals wave in positioning India as a major global hub in this sector?

Feedstock sourcing and prices, below par production of intermediates like the 'King of Petrochemicals' Ethylene in the country, lagging technological advancement in the area, absence of world class Petrochemicals assets are but some of the challenges. Amidst the ever-evolving undercurrents of change, be it changing demand-supply pattern, shifts in feedstock diversity, new entrants or emerging markets, there are massive potential opportunities. A third of the global demand for crude oil is coming from the Petrochemicals industry alone.

Leveraged adequately, the Petrochemicals sector has the potential to alter India's manufacturing and industrial landscape across every possible industry, from Agriculture, Healthcare, Textiles, Automobiles, FMCG, Infrastructure, and Consumer Durables.