India Poised to Become Petrochemical Powerhouse with $37 Billion Capex Push: S&P

According to a new report by S&P Global Ratings, India is set to emerge as a major petrochemical powerhouse. The country is planning a $37 billion investment to boost self-sufficiency in chemicals and reduce import dependence.

Key Insights from the Report

Of the $37 billion capex, around $25 billion will come from public sector undertakings (PSUs), largely through refinery-linked expansions; the rest ($12 billion) is expected from private sector investments.

By 2030, India is projected to account for one-third of global capacity additions in the petrochemical space—following in the footsteps of China’s recent build-out.

Domestic demand is expected to remain strong, especially for widely used products like polyethylene, which will act as a buffer for local producers even as global supply builds.

Challenges & Regional Impact

Increased capacity might result in oversupply pressures in the Asia-Pacific region, squeezing margins for exporters.

Trade and tariff barriers, particularly in exporting countries, may complicate market access just as supply grows and raw material costs fluctuate.

Stay ahead of market trends with the Credco app. For any queries, please reach out to us via WhatsApp at ‪+918448083211‬.