Petrochemicals | Current Affairs & Hindu Analysis: Daily, Weekly & Monthly - UPSC PDF Download

Introduction

• The chemical and petrochemical sector in India is vital for industrial and agricultural progress, having shown substantial growth over the past 70 years.
• Over 80,000 varieties of chemicals and petrochemicals are produced in India, supporting a workforce of over two million individuals.
• India is recognized for exporting specialized chemicals like agrochemicals, dyes, and pigments, offering significant investment opportunities across various segments.
• The country is increasingly becoming a competitive global manufacturing hub, attracting foreign investments and aiming to reach a market value of $300 billion by 2025.

Market Size and Global Position

• The industry is currently valued at $178 billion, with projections to reach $300 billion by 2025.
• India is establishing itself as a high-quality manufacturing destination, drawing foreign investments due to the pandemic-induced supply chain diversification in the global chemical and petrochemical industry.

Integration and Economic Contribution

• The industry is a crucial part of India's manufacturing sector and economic development, serving diverse industries and enhancing the quality of life for the population.
• It plays a significant role in sectors such as agriculture, food and beverages, textiles, rubber, and petroleum refining through direct and indirect linkages.

Diverse Applications

• Petrochemicals are essential for producing various materials like polymers, synthetic fibers, performance plastics, and more.
• They are integral in agriculture for manufacturing fertilizers and pesticides to improve crop yields.
• In healthcare, the industry produces pharmaceuticals, medical devices, and personal protective equipment.
• The automotive, packaging, textiles, and consumer goods sectors all rely on petrochemicals for their products.

Growth Drivers

• Strong domestic and export demand, favorable governmental policies, investments in research and development, and increased innovation drive industry growth.

Environmental and Sustainability Challenges

• Fossil fuel extraction and processing contribute to environmental issues like greenhouse gas emissions, pollution, and habitat destruction.
• Plastic waste poses a significant environmental threat, necessitating sustainable practices and the development of alternative materials.

Way Forward

• Adopting green chemistry, utilizing bio-based feedstocks, enhancing recycling technologies, and implementing circular economy principles are key steps towards sustainability.
• Stringent environmental regulations, incentives for green technologies, public-private partnerships, and international cooperation are crucial for industry sustainability.

Conclusion

• The Indian chemical and petrochemical industry is indispensable, facing environmental challenges but aiming for a sustainable future through innovation and strong policy support.