Integration into global supply chains and strong focus on R&D to address trade deficit in Chemicals & Petrochemicals

Sector needs to accelerate 9.5–10% growth annually

The chemicals and petrochemicals sector has grown steadily with $22 billion in FDI and infrastructure initiatives like PCPIRs and Plastic Parks. To leapfrog and reach ambitious targets of $300 billion in sales by 2028 and $1 trillion by 2047, the sector needs to accelerate 9.5–10% growth annually, said Shri Deepankar Aron, Joint Secretary, Department of Chemicals & Petrochemicals, Ministry of Chemicals and Fertilisers, Government of India. As exploring alternative supply options is crucial, India has signed the supply pillar of the Indo-Pacific Economic Framework for Prosperity (IPEF) that has identified chemicals as one among the three important sub-sectors to boost supply chain options along with minerals and pharmaceuticals.

Shri Aron was speaking at the 6th edition of ICPC 2024 in New Delhi organised by Confederation of Indian Industry. The Conference was focusing on “Navigating growth opportunities: Innovation, Sustainability, and Skills for Global leadership.

Deliberating on the potentials of the sector to bring revolutionary change, Shri Aron said, Industry needs to have strategic vision, stronger focus and larger spending in R&D, and explore emerging areas. “We have $45bn exports whereas imports are to the tune of $ 6 bn in the sector. Addressing the $31 billion trade deficit requires integration into global supply chains and a stronger focus on R&D.”

Setting up of Centres of Excellence are significant steps for innovation. Five centres of excellence have been added in new areas including bio-chemicals and biopolymers, additional to the current 18 centres. Towards the safety requirements in the sector, he said, Carbon Capture, Utilization, and Storage programme under the leadership of Prime Minister is happening in mission mode. “Indian chemical industry brand needs to take every measure to become safer, secure and reliable in the global market.”

Addressing the forum, Mr Sanjeet Singh, Programme Director, Senior Advisor, NITI Aayog said, “For sectors like chemicals and petrochemicals, investing in R&D and innovation will be the true game-changer. As a young nation in its development stage, we have the unique opportunity to create infrastructure and industries that are cleaner, greener, and more efficient. The choices we make today will shape the future of our country for generations to come."

The sector contributes 7% towards the GDP. As the GDP is expected to grow nine times to achieve our goals set for Viksit Bharat, the country must achieve the attributes of the developed countries, Mr Singh said. “The clear action plan is to make India ‘Viksit Bharat’ where transformation can be built on key pillars including India’s deep social commitment with a clear focus on the lives of the rural pockets; growth of the new middle class and making them empowered and aspiring; Creating healthcare, education, and rural infrastructure; Use of digital technology; and Structural and institutional reform.”

Dr Gyanendra Shukla, Chairman, CII National Committee on Chemicals & Petrochemicals and Managing Director & Chief Executive Officer, Rallis India Ltd said that the chemicals sector stands as a cornerstone of India’s industrial growth and global trade. By integrating technologies like AI, automation, and green chemistry, we can drive efficiency, reduce our environmental footprint, and align with India's NetZero goals by 2070. A skilled, adaptive workforce is critical to future success, and a strong govt-industry collaboration will ensure we set benchmarks for global leadership. “It is imperative that we invest in training programs that focus on emerging technologies, sustainability practices, and operational excellence. This not only ensures that our workforce is future-ready but also strengthens our position in the global marketplace.”

Mr Namitesh Roy Choudhary, Vice-Chairman, CII National Committee on Chemicals & Petrochemicals and Vice Chairman & Managing Director, Lanxess India Pvt Ltd said, "India must focus on three essential pillars, sustainability, upskilling, and innovation, to establish itself as the global leader in the sector. Adopting eco-friendly practices that align with global environmental goals, upskilling the workforce to prepare younger generations for future industry needs, ensuring safety and compliance, and focusing on innovation to drive operational excellence, will help Indian companies maintain their competitive edge."

New Delhi

29.11.2024