Sitharaman urged the industry to focus on issues related to sustainability
The Government can consider Production Linked Incentive (PLI) scheme for the Indian chemical and petrochemicals sector which has a huge potential and scope to manufacture some 80,000 products for sectors such as agriculture, infrastructure, textiles and packaging.
“We are in favor of India becoming a manufacturing hub and we will consider the PLI scheme also for the chemicals and petrochemicals sector,” Finance Minister Nirmala Sitharaman said at FICCI’s 3rd Global Chemicals & Petrochemicals Manufacturing Hubs in India Summit’ held 27-28 July 2023.
India has set its sight on becoming energy independent by 2047 and achieving net zero by 2070, the Minister pointed out while urging the industry to play a key role in this mission.
“Net zero cannot be achieved unless each one of the industry and sector contributes to it. We are very focused on ‘Green growth’, carbon intensity has to be reduced and therefore, each one of the sectors has to contribute towards this,” she emphasized.
Highlighting the challenges in the sector, Sitharaman urged the industry to focus on issues related to sustainability of the products and processes, immense need for skilling, need to adopting Industry 4.0 in a very big way, skilling of people and pollution control regulations.
“India has made an impact in the sector globally. The combined exports of major chemicals and petrochemicals in 2022-23 was US$9 billion but also an increase in imports to US$13.33 billion.
“I am quite comfortable with this but many of these imports are items which can be produced in India itself and there are some efforts in that direction as well,” she stated.
Sitharaman also urged the industry including FICCI to look at the ways to become a circular economy and the government will work to consider on the recommendations submitted by the industry to make the sector sustainable.
The market of Specialty chemicals is growing exponentially and industry in India is expected to grow at 12% CAGR, she noted.
“I, therefore, understand the need for more robust support for specialized chemicals. The emergence of this market is driven by country’s strong process engineering capabilities, low-cost manufacturing capabilities and abundant manpower,” said the Minister.
As of today, the chemicals and petrochemicals market is expected to reach US$300 billion by 2025 and US$1 trillion by 2040 with huge opportunities, added Bhagwanth Khuba, Minister of State for Chemicals & Petrochemicals. Presently, the market size of the sector is around US$190 billion.
“The government is working with state governments to set-up chemical parks in the country and the process of setting up plastic parks is already in place. We are also creating Center of Excellence to bring industry and academia together along with promoting skill development,” he said. Fiinews.com
