Indian petrochemical producers are exploring investments in specialty chemicals and seeking technology partnerships with international companies to reduce the country’s dependence on imports. Industry representatives discussed these opportunities at the India Chem 2026 conference in Mumbai. Indian Oil Executive Director Sumit Basu highlighted the significant gap in India’s specialty chemicals sector, particularly in engineering plastics. “We are evaluating many specialty products. Apart from the commodity plastics, there is a huge deficiency in specialty chemicals in India, like engineering plastics,” Basu said.
He also suggested that foreign companies with advanced production technologies could invest in India through joint ventures as the country signs free trade agreements (FTAs). Citing China’s experience, he noted that partnerships between domestic and international companies had helped expand its chemical production capacity despite similar feedstock constraints.
Technology Transfer Could Strengthen Domestic Manufacturing
India continues to rely on imports for several chemicals, leaving domestic industries vulnerable to global supply disruptions and geopolitical tensions, including the Iran war. These disruptions prompted the government to waive import duties on more than 40 chemicals from April to mid-July.
To address these challenges, the Department of Chemicals and Petrochemicals (DCPC) is considering technology transfer as part of India’s trade negotiations. G Venkatesh, Joint Secretary at the DCPC, said the government would take up the issue with the Department of Commerce. Such collaborations could help Indian manufacturers access advanced technologies, strengthen domestic production and reduce dependence on overseas suppliers.
Feedstock Availability Remains a Key Challenge
Despite growing interest in specialty chemicals, industry participants identified feedstock availability and project viability as major barriers to establishing new manufacturing units. Integrated Indian refiners generally consume most of their monomer output in their own downstream plants. Consequently, standalone units that depend on monomers such as propylene face commercial risks because of uncertain feedstock availability. However, capacity expansion plans among several domestic producers could create opportunities for smaller manufacturers to secure additional feedstock. Atul Khanwalkar, Head of Petrochemicals at Bharat Petroleum Corporation Ltd (BPCL), expressed the company’s willingness to explore such arrangements. “We would certainly be evaluating opportunities to share some of our feedstock,” he said. BPCL is building a 1.2-million-tonne-per-year steam cracker at Bina in Madhya Pradesh, alongside downstream polyolefin production facilities. The project could strengthen the domestic petrochemical supply chain as India expands its manufacturing capabilities.
Industry Calls for Faster Joint Venture Approvals
Several state-controlled petrochemical companies also urged the government to simplify approval procedures for joint ventures and reduce delays in establishing new projects. Faster regulatory clearances could encourage foreign technology providers to partner with Indian manufacturers, accelerate investment decisions and support the development of specialty chemical production facilities.
India Plans National Petrochemical Feedstock Policy
Meanwhile, the government plans to develop a national petrochemical feedstock policy to address supply uncertainties highlighted by the Iran war. Tejveer Singh, Secretary of the DCPC, said the government intended to consult industry stakeholders and the Chemicals & Petrochemicals Manufacturers’ Association (CPMA) to develop the policy. “I think this is something we would like to sit with the industry and the Chemicals & Petrochemicals Manufacturers’ association (CPMA) and see how we can work on it,” he said. The conflict has already prompted India to introduce several feedstock conservation measures. These include diverting propane, butane and propylene towards liquefied petroleum gas (LPG) production to manage domestic supply requirements.
Specialty Chemicals Emerge as a Strategic Growth Opportunity
As reported by argusmedia.com, India’s push towards specialty chemicals reflects a broader effort to strengthen domestic manufacturing, diversify supply chains and improve access to advanced production technologies. By encouraging foreign technology partnerships, improving feedstock availability and streamlining project approvals, the country could create new opportunities for specialty chemical producers. At the same time, a coordinated national feedstock policy could help address supply risks and support the long-term growth of India’s petrochemical industry.
