Reliance Urges India to Ramp Up Petchem Output
A senior executive at Reliance Industries has urged India to boost its petrochemical production urgently. At a recent industry conference, Vikram Sampat, Reliance’s strategy chief, warned that China controls nearly 40–50% of global petrochemical output, while India’s figure remains around 20%.
Why It Matters
China’s rapid capacity expansion has created a global surplus, pushing down profit margins worldwide. India’s petrochemical consumption today is well below the global average. But with India’s economy growing faster than other major nations, domestic demand for products like plastics, fibres, and packaging chemicals is set to rise sharply.
Strategic Shift for Refineries
To improve profitability, Sampat said Indian refiners must pivot from fuel production to petrochemicals. He projected that once petrol demand peaks, up to 30–50% of gasoline output should be redirected into petrochemical manufacturing. Similarly, if diesel demand falls, as much as 50–70% could be diverted to petchems. Without this shift, he cautioned, “China will continue to grow” while India falls behind.
Economic and Industrial Impact
Analysts say this planned shift is essential to maintain healthy margins in the refining sector and strengthen India’s place in global petrochemical trade. As fossil fuel demand gradually slows, especially with cleaner energy trends, petchems offer refineries a way to sustain growth. Boosting capacity will also help India reduce dependence on imports and create skilled jobs in manufacturing.
Looking Ahead
India’s petrochemical industry is expected to grow from around USD 220 billion in 2025 to USD 300 billion. With planned investments—some estimates suggest up to USD 87 billion over the next decade—companies like Nayara and Haldia Petrochemicals are already expanding production. Experts say that bolstering this sector now could position India as a stronger competitor on the world stage.
