Public, pvt sectors going ahead with hefty investments Petrochemicals sector: India likely to overtake US as 2nd largest consumer

India will stick with major investment plans to reduce import dependency on chemicals used in everyday goods, from plastic bags to auto parts.

- Palazhi Ashok Kumar

This is an overhang on a sector that already faces overcapacity in Asia-Pacific, S&P Global Ratings said on Thursday.

Highlighting the growing influence of India in the energy landscape, the global rating agency said, India is the next big player in Petrochemicals, and will add to supply imbalances.

At the same time, increasing exports to the US, which is also one of the three largest petrochemical market, may not be economically viable due to tariffs. This may consequently impair earnings and drive consolidation within the industry.