Demand for petrochemicals in India is expected to remain strong in future: Report!

Consumption of petrochemical products in India is expected to grow at the rate of 6 to 7 percent every year in the coming few years. This increase will be due to the country’s economic growth and increasing demand for products made from petrochemicals. This information was given in the CareAge Ratings report released on Monday.

Considering this situation, reducing dependence on imports is being considered a major goal of India. For this reason, both government and private companies are planning to increase their petrochemical production capacity.

The report said that the production capacity of polypropylene (PP) is expected to increase by 1.8 times between financial years 2025 to 2030, while its demand will increase by 1.4 times. This can reduce dependence on imports to a great extent by 2030.

Rabin Bihani, associate director, CareAge Ratings, said the most important thing for domestic companies is to reduce costs so that they can get good returns on their investments.

According to the report, due to excess production worldwide, prices of petrochemical products may remain weak at present. However, there has been a slight improvement in the first half of the financial year 2026, due to which the profits of companies may increase by about 2 percent.

Hardik Shah, director of CareAge Ratings, said that good profits in the long run are possible only when costs are low, global demand and supply are balanced and government support is available when needed. Especially due to large scale production by China, Indian companies have been suffering losses for a long time.

The report said that in the last few years, the consumption of polymers such as polypropylene (PP), high density polyethylene (HDPE), low density polyethylene (LDPE), linear low density polyethylene (LLDPE), polyvinyl chloride (PVC), aromatics and petrochemical products like elastomers has increased rapidly in India and is expected to increase further.

During this period, the production capacity in the country could not increase much, due to which there had to be greater dependence on imports to meet the domestic demand.

The report further said that petrochemical production has increased significantly worldwide in the last few years, especially in China. But, the demand did not increase at that pace, leading to an imbalance in demand and supply. This affected the profits of Indian companies, as they had to compete with cheap Chinese products.