Indian Chemical Industry Faces Severe Challenges: Dependence on Imported Raw Materials Reaches $220 Billion!

Speaking at Chemistry India 2024, a major international exhibition and conference on Friday, the Minister of Chemistry and Fertilizers, J.P. Nadda, stressed that India's chemical and petrochemical industry, as an important pillar of the country's economy, needs to overcome its dependence on imported feedstocks for its future development. He noted that the sector will play a key role in realizing India's Vision 2047 and must embrace innovation, sustainability and self-emergence.

The event was organised by the Ministry of Chemistry and Petrochemicals in collaboration with FICCI under the theme "Paving the Future of Chemicals and Petrochemicals in India". The three-day meeting, which kicked off on Thursday, attracted the participation of a number of senior officials, including Oil and Gas Minister Hardeep Singh Puri, as well as the chief ministers of Gujarat, Madhya Pradesh and Odisha.

In his speech, Minister Nadda pointed out that despite the remarkable achievements of the chemical and petrochemical industry in India, over-dependence on imported raw materials remains a major challenge. He stressed the need for the industry to actively explore alternative feedstocks, such as biomass plastic waste and green hydrogen, and expand domestic sources of gas and coal supply to reduce vulnerability and enhance industrial security. He further noted that sustainability is the future direction for the industry and that it is essential to adopt sustainable practices such as recycling, renewable energy and alternative raw materials in line with global trends.

The minister also said that the transition from petroleum to chemicals and the option of green hydrogen offer great opportunities for the industry. By deepening chemical integration, optimizing energy use and circular economy principles, India can drive economic growth while reducing its environmental footprint. He mentioned that the Indian chemical and petrochemical industry is currently worth $220 billion and is expected to exceed $300 billion by 2028 and reach $1 trillion by 2040.

To support industrial growth, the central government has launched several initiatives such as' Make in India 'and the National Industrial Corridor Development Programme. Minister Nadda noted that petrochemical and petrochemical investment zones in Gujarat and Orissa have attracted investments worth $30 billion and created a large number of jobs. Meanwhile, Prime Minister Gati Shakti's national Master plan has also improved productivity and sustainable development by integrating infrastructure progress across sectors.

He stressed that innovation and research are crucial to driving the future of India's chemical industry. Through collaboration between government, industry and academia, India is expected to maintain its leading position in the global chemicals and petrochemicals sector. He also mentioned that chemical manufacturing centers have great potential, and the government has introduced relevant policies to support the sustainable growth of the industry.

Other senior officials also delivered important speeches. Anupriya Patel said India is set to become a global hub for chemicals and petrochemicals, driven by preferential policies and skilled workforce. Bhupendra Patel highlighted Gujarat's leading position in the export of chemicals and petrochemicals and called for greater cooperation for a prosperous future. Mohan Charan Majhi, for his part, introduced Orissa's strengths in the chemical and petrochemical industries and called on industry leaders and investors to seize the opportunities offered by the state. Mohan Yadav, for his part, said the Madhya Pradesh government was making efforts to promote the development of the petrochemical and chemical industries and planned to introduce a pharmaceutical policy to boost the industry development and job creation.

Finally, representatives from Reliance Industries Limited and Evonik Industries Group also shared their views and prospects for the future development of the chemical industry in India. They agreed that India has great potential to reshape global value chains and drive green transformation.