India to emerge as next petchem powerhouse with $37 bn capex push

The report warns that India’s aggressive capacity expansion will intensify oversupply pressures in Asia’s petrochemical sector

- OUR CORRESPONDENT

India is poised to become the next major player in the global petrochemicals industry, backed by a planned capital expenditure of $37 billion aimed at boosting self-sufficiency, S&P Global Ratings said in anew report.

‘The report, ‘First China, Now India: Self-Sufficiency Goals Will Add To Petrochemicals Supply, warns that India’s aggressive capacity expansion - following similar moves by China - will intensify oversupply pressures in Asia's petrochemical sector.

India, the world’s third-largest petrochemical consumer after China and the US, has historically relied on imports to meet domestic demand. But a shift toward self-sufficiency is underway, and S&P expects India to account for a third of global capacity additions by 2030.

S&P Global Ratings, in the report, anticipates that India will stick with major investment plans to reduce import dependency on chemicals used in everyday goods, from plastic bags to auto parts.