Govt to consider production-linked incentive scheme for chemicals, petrochemicals sector: Nirmala Sitharaman
Jul 27, 2023
New Delhi [India], July 27 : Union Finance and Corporate Affairs minister, Nirmala Sitharaman, on Thursday emphasized the immense potential of the Indian chemical and petrochemicals sector at the 3rd edition of the 'Global Chemicals and Petrochemicals Manufacturing Hubs in India' Summit on the theme ‘Sustainability and Circularity’ in New Delhi.
Sitharaman highlighted its impact on various other industries within the economy, as it manufactures a staggering 80,000 products, including those in agriculture, infrastructure, textiles, and packaging.
In a bid to transform India into a prominent manufacturing hub, she revealed that the government will consider the introduction of a Production-Linked Incentive (PLI) scheme for the chemicals and petrochemicals sector.
Nirmala Sitharaman outlined the ambitious goals set by the Indian government, stating, "India has set its sight on becoming energy independent by 2047 and achieving net zero carbon emissions by 2070."
The Finance Minister also stressed the importance of transitioning to a circular economy, encouraging the industry to work together with the government to make the sector more sustainable.
She acknowledged the significant potential in the speciality chemicals market, projected to grow at a 12 per cent CAGR, driven by India's process engineering capabilities, low-cost manufacturing, and abundant manpower.
Bhagwanth Khuba, the Minister of State for Chemicals & Petrochemicals and New & Renewable Energy, said, “Today the market size of the sector is around USD 190 billion and is likely to reach USD 300 billion by 2025 and USD 1 trillion by 2040 with huge opportunities.”
He mentioned ongoing initiatives such as setting up chemical parks and promoting skill development.
Pratap Keshari Deb, the Minister of Industries, MSME and Energy of Odisha said, “We are growing domestically at 8 per cent in the chemicals sector and to sustain this growth over the next 10 years we would need 40 per cent growth in the capacity.”
The summit also saw contributions from industry leaders, including Deepak C Mehta, Chairman of FICCI National Chemical Committee and CMD of Deepak Nitrite Ltd, and Prabh Das, Chairman of FICCI Petrochemicals Committee and MD & CEO of HPCL-Mittal Energy Ltd.
Arun Baroka, the Secretary (Chemicals & Petrochemicals) of the Department of Chemicals & Petrochemicals said, “Changing industry landscape is driving the Indian chemical and Petrochemicals industry towards the next wave of growth with newer opportunities”.
India's chemicals and petrochemicals sector is poised to play a vital role in achieving the country's energy independence and net-zero carbon emission goals while contributing significantly to its economic growth.
