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In the next five years, Odisha is expected to be a hub for downstream and ancillary industries in the chemical and petrochemical industries. Organisations and research institutions can lead the way, such as CIPCT. Internationally, India has emerged as a key player in global development that is both sustainable and inclusive. As the “I” in the “BRICS” group of nations, India plays a critical role in emerging markets and developing nation leadership. India fosters a culture of entrepreneurship and innovation, has pioneered the global IT services industry, and has a global Diaspora that is a leader in various fields.
Industry of chemicals
According to the United Nations Industrial Development Organization, India’s chemical industry has grown rapidly over the last decade and is ranked sixth in Asia (UNIDO). The industry is expected to reach USD 200 billion by 2020. One of the main pillars of the Indian manufacturing sector is strong domestic demand, which is driven by rising purchasing power parity in the country, and India is expected to maintain healthy growth in the coming years. India’s geographical location provides easy access to the global market, and its low-cost advantage, availability of skilled labour, and talented pool make it a desirable destination.
What is the petrochemical industry?
The answer to the question, what is the petrochemical industry? The chemical industry, which includes petrochemicals industries and alcohol-based chemicals, is one of the oldest petrochemical industries in India, and it has grown at a rate that has outpaced the industry’s overall growth. Companies that manufacture industrial chemicals are included in this industry. It processes raw materials (natural gas, oil, water, air, and minerals) into over 70,000 products. This industry accounts for approximately 80% of global industrial output in the production of polymers and plastics, particularly polyethene, polypropylene, PVC, and polystyrene.
Chemical Industries
Chemical industries produce dyes, pigments, perfumes, flavours, plastics, and other speciality chemicals that improve our quality of life. On the other hand, this industry has a bad reputation due to its negative impact on the internal and external environment. These industries in India include both small and large-scale units. Small-scale industrial (SSI) units were established in large numbers due to fiscal concessions granted to small sectors in the mid-1980s. With a focus on product innovation, brand building, and environmental stewardship, this industry is becoming more customer-focused.
Petrochemicals
The question arises here: What is the petrochemical industry, and how do they work? The petrochemical industry in India is the most profitable, and it is expected to reach USD 100 billion by 2020, more than doubling its current size of around USD 40 billion. The petrochemical industry is a cyclical one. The petrochemical industry is characterised by low demand and volatile feedstock prices. The building blocks of the organic chemical industry, olefins and aromatics, are derived from petroleum. These units also produce intermediates such as dimethyl terephthalate, detergent raw materials, and various solvents. India’s consumption of petrochemical products remains among the lowest in the world. As an example, consider the case of polyester.
History
The petrochemical industry, which first appeared on the Indian industrial scene in the 1970s, experienced rapid expansion in the 1980s and 1990s. The petrochemical industry consists primarily of synthetic fibers and yarns, polymers, synthetic rubber, detergent intermediates, and plastic processing industries.
Industries’ global consumption
India has a per capita consumption of 1.4 kg, while China has a consumption of 6.6 kg, and the rest of the world has a consumption of 3.3 kg. India’s per capita consumption is 4 kg, accounting for roughly one-fifth of global consumption in terms of polymers. India’s current per capita plastic consumption is one-sixth of the global average. In addition, the vast majority of current consumption is met by imports. This demonstrates both the industry’s enormous potential and its total short-sightedness in failing to plan expansion by market demand.
Facts and figures about petrochemical industries
The petrochemical industry in India accounts for roughly 30% of the country’s USD 120 billion chemical industry, which is expected to grow at an average rate of 11% over the next few years and reach USD 250 billion by 2020.
The petrochemical industry is one of the quickest developing fragments, with a development pace of 13%, over two times the development pace of India’s GDP. The worldwide development rate in the petrochemical area is the most elevated at 6%.
Since 1998, the Indian refining sector has grown from 68.2 MMTPA to 254 MMTPA and is expected to reach 333 MMTPA by 2022, with investments totalling over INR 3,000,000 Crore.
Conclusion
The chemical sector appears to have a promising future, but the search for feedstock and knowledge management continues to be a major challenge. As the state grapples with slow economic growth and a large pool of educated unemployment, the timely commissioning of the IOCL refinery is perhaps the most significant gift. The project was delayed for a long time because of the project’s long gestation period combined with a slew of controversies. Now is the best time to develop sustainable, environment-friendly policies and downstream industries for the state’s inclusive growth.
