Indian petrochemical demand likely to see 14-16% AAGR through 2011

17-Oct-08

Indian petrochemicals demand is expected to grow at 14-16% average annual growth over 2007-2011 according to BMI's latest petrochemical report. The Government anticipates the deficit of 5 mln tpa of ethylene and 4 mln tpa of polymer in India by 2012. The reports say that India will require an additional five world-scale steam crackers and 10 polymer plants in order to cope with the capacity dearth. Until 2011, China's petrochemical industry will have the upper hand relative to India as the latter copes with the capacity shortfall, lack of infrastructure and inadequate investment in R&D capabilities, the report anticipates. The report also infers that the factors will further lead to ill-development of downstream petrochemical segments. Otherwise, Indian producers will have to look for development of alternative feedstock sources at lower costs which will require an increase in R&D facilities.