Union Minister of Petroleum and Chemicals, Hardeep Singh Puri, has announced that the government aims to expand India’s petrochemical industry to USD 1 trillion by 2040. This bold vision reflects the country’s commitment to strengthening its chemical manufacturing base and enhancing global competitiveness.
Current Valuation and Required Growth
The petrochemical sector stands at USD 300 billion in 2025 and will likely reach USD 390 billion by 2030. However, to meet the 2040 target, the industry must accelerate to a CAGR of 10.8 percent, which is nearly double the current growth rate of 5.4 percent.
As per Projects Today, this rapid scale-up will be crucial for stimulating greater investment, boosting production capacities, and encouraging innovation—especially in specialty chemicals, which command premium prices due to their advanced applications.
Government Push Through Expansion and Policy Reform
Moreover, the government is actively promoting growth by supporting greenfield petrochemical expansions in strategic states such as Rajasthan, Tamil Nadu, and West Bengal. At the same time, it is implementing policy reforms to attract domestic and foreign investors, thereby strengthening the overall ecosystem.
Energy Transition and Industry Collaboration
India’s broader energy transition further complements this growth trajectory. Upcoming platforms, including the Oil & Gas Annual Conference & Expo 2025, will enable policymakers and industry leaders to collaborate, exchange insights, and align strategies for shaping the nation’s petrochemical and energy landscape.
