Finance Minister Inaugurates Summit on India's Chemicals and Petrochemicals Manufacturing Hubs

The Union Minister of Finance and Corporate Affairs, Smt. Nirmala Sitharaman, inaugurated the 3rd Edition of the Summit on "Global Chemicals and Petrochemicals Manufacturing Hubs in India" (GCPMH 2023) at New Delhi. The event was organized by the Department of Chemical & Petrochemical, Ministry of Chemicals and Fertilisers, in association with the Federation of Indian Chambers of Commerce and Industry (FICCI). The Minister of State for Chemicals and Fertilisers, Shri Bhagwant Khuba, graced the occasion, along with other prominent dignitaries and industry leaders.

During her address, Smt. Nirmala Sitharaman emphasized the vast potential of the Indian chemical and petrochemicals sector, which also significantly impacts various other industries in the economy. With over 80,000 chemical products, the sector plays a crucial role in agriculture, infrastructure, textiles, pharmaceuticals, packaging, and more.

The Finance Minister highlighted India's commitment to becoming energy independent by 2047 and achieving net zero emissions by 2070. Emphasizing the importance of green growth and carbon intensity reduction, she stressed the need for concerted efforts to boost domestic production and reduce imports, which reached $13.33 billion in the chemical and petrochemical sector during 2022-23.

Also Read: PM Narendra Modi to Release Rs 17,000 Crore as 14th Installment under PM-KISAN Scheme

Smt. Nirmala Sitharaman also shed light on the burgeoning market for specialty chemicals, growing at an impressive 12% compound annual growth rate (CAGR). To support this emerging segment, she called for robust backing and specialized support. India's strong process engineering capabilities, cost-effective manufacturing, and abundant skilled manpower are driving the growth of the specialty chemicals market.

In his address, Shri Bhagwanth Khuba mentioned the government's efforts to collaborate with state governments in establishing chemical parks across the country, with plastic parks already in the process of being set up. He also highlighted the establishment of Centers of Excellence to foster collaboration between industry and academia and promote skill development. The market size of the Chemical and Petrochemical sector currently stands at around $190 billion and is projected to reach $300 billion by 2025 and a staggering $1 trillion by 2040, offering ample opportunities for investments.

Shri Pratap Keshari Deb, Minister of Industries, MSME & Energy, Govt of Odisha, expressed the state's ambition for sustained growth in the chemicals sector. He stated that Odisha aims to achieve a 40% capacity growth over the next decade to maintain its impressive 8% domestic growth rate in the chemicals sector. The state's Industrial Policy Resolution, 2022, is designed to be industry-friendly, offering tax breaks for manufacturing units and exemptions for electrical duties.

Shri Arun Baroka, Secretary, Department of Chemicals and Petrochemicals, highlighted India's potential for high growth in the chemicals and petrochemicals sector, supported by favorable policy reforms and increasing demand. He revealed that if India continues on its current growth trajectory, the chemicals sector could reach an impressive $1 trillion by 2047. The establishment of four Petroleum, Chemicals, and Petrochemicals Investment Regions (PCPIRs) is further bolstering the growth of the sector, while proposed Chemical Parks are expected to catalyze faster industry expansion.

The GCPMH 2023 summit serves as a platform for industry leaders, policymakers, and academicians to explore and capitalize on the vast opportunities presented by India's thriving chemical and petrochemical sector. As the government and stakeholders work hand in hand, the industry is poised to witness exponential growth, bolstering India's position as a global hub for chemicals and petrochemicals manufacturing.

Also Read: Key Highlights of Today's Announcement by PM Narendra Modi for Farmers: VIDEO