India, whose per capita consumption is significantly lower than that of developed economies, will contribute 10 per cent of the incremental growth of global petrochemical demand, Oil Minister Hardeep Singh Puri has said.
Petrochemicals, which convert oil and gas into a wide range of everyday products such as plastics, fertilizers, packaging, clothing, digital devices, medical equipment, detergents, and tires, are rapidly becoming the world's largest driver of oil consumption.
They are set to account for more than a third of the growth in oil demand by 2030, and nearly half by 2050, ahead of trucks, aviation and shipping, according to IEA.
India is poised to grow strongly from its current level of only 4 per cent of global capacity to satisfy increasing domestic demand.
"Petrochemical market size is currently in India about USD 190 billion, whereas the per capita consumption of petrochemical segments is significantly lower, compared to that in developed economies. And this gap offers substantial space for demand growth and investment opportunities," Puri said while addressing the plenary session at the 7th Petrochemical Conclave here.
India, the world's third largest energy consumer, is also focusing on becoming a global petrochemical manufacturing hub, he said.
"One of the most important factors driving the growth of the petrochemical industry is the increasing demand for petrochemical products from a growing population and a rapidly expanding economy. India would contribute 10 per cent to the incremental growth of global petrochemical demand," Puri stated, according to a statement issued by Indian Oil Corporation (IOC).
The government, he said, has instituted several policies to boost this sector and improve the ease of doing business, including allowing 100 per cent foreign direct investment through the automatic route.
Speaking on the occasion, Minister of State for Petroleum and Natural Gas Rameswar Teli said sectors like petrochemicals have contributed a lot to the GDP success story and shall continue to add value in the future.
IOC Chairman S M Vaidya said, "Currently, petrochemical production accounts for nearly 14 per cent and 8 per cent of the global demand for oil and gas, respectively. With the evolution of new technologies, especially in crude to chemicals, petrochemical production share is expected to increase to about 30 per cent shortly."
A white paper on 'India's Petrochemical Future - Sustainable and Aatmanirbhar' was also released by Puri at the conclave, the statement added.
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