6.5% growth of petrochemical sector during Plan period 2007-12 misses target of 12%

08-Sep-09

The volatility in crude oil and petrochem prices amid a global economic slowdown, has affected the growth of the petrochemical sector in India. The sector has recorded 6.5% growth rate in the Eleventh Five-Year Plan (2007-12) so far. The original government’s growth target of 12% could get closer to realization on the signs of recovery that could get the Eleventh Five-Year Plan back on track. Polymer consumption in India at 6.2 mln tons is 3% of global consumption of about 200 mln tons. Per capita polymer consumption in India is 5.2 kg as compared to the world average is 25 kg. To boost the industry, the government has taken two major initiatives, including the announcement of a National Policy on Petrochemicals, and Petroleum, Chemicals and Petrochemical Investment Regions (PCPIRs). The Policy aims to increase investment in the sector, both upstream and downstream, by creating quality infrastructure, increasing the domestic demand and per capita consumption of polymers and plastics, adding value to the domestic downstream plastic processing industry through modernisation, research and development, and achieving environmentally sustainable growth.