India Targets USD 1 Trillion Petrochemical Industry by 2040
India aims to expand its petrochemical industry to USD 1 trillion by 2040, a goal announced by Union Minister Hardeep Singh Puri. The sector, currently at USD 300 billion, requires a 10.8% CAGR, double the current rate, to achieve this. The government is supporting greenfield expansions in states like Rajasthan and Tamil Nadu, implementing policy reforms to attract investors, and fostering innovation in specialty chemicals, aligning with India's broader energy transition strategy.
India has outlined an ambitious target to expand its petrochemical industry to USD 1 trillion by 2040, a vision articulated by Union Minister Hardeep Singh Puri. This strategic objective is a cornerstone of the nation's commitment to strengthening its chemical manufacturing base and enhancing its global competitiveness. Currently valued at USD 300 billion in 2025 and projected to reach USD 390 billion by 2030, the sector faces the challenge of significantly accelerating its growth. To meet the 2040 target, the industry must achieve a Compound Annual Growth Rate (CAGR) of 10.8 percent, which is nearly double its current growth rate of 5.4 percent.This aggressive scale-up is considered vital for attracting greater investment, boosting production capacities, and driving innovation, particularly in specialty chemicals, known for their advanced applications and premium pricing. The government is actively facilitating this growth by supporting greenfield petrochemical expansions in strategic states such as Rajasthan, Tamil Nadu, and West Bengal. Simultaneously, it is implementing comprehensive policy reforms designed to draw both domestic and foreign investors, thereby fortifying the overall industry ecosystem. This initiative is seamlessly integrated with India’s broader energy transition efforts. Forthcoming platforms, including the Oil & Gas Annual Conference & Expo 2025, are designed to serve as crucial forums for policymakers and industry leaders to collaborate, share insights, and synchronize strategies for shaping India’s future petrochemical and energy landscape.
