Petrochemicals: The story ahead

Petrochemicals: The story ahead

8:03 AM, 13th July 2017
Editorial of Chemical Today magazine, July 2017

Editorial of Chemical Today magazine

Petrochemicals play a vital role in shouldering the growth of any economy by being the backbone to some of the crucial industries including agriculture, infrastructure, healthcare, textiles and consumer durables. The exuberant growth of the Indian economy cannot be spoken without mentioning the role that petrochemical industry has and is expected to play in this journey.

The petrochemical industry has its own growth story to tell. This industry contributes about 30 percent to India's chemical industry which is likely to become $250 billion by 2020. In this journey, the petrochemicals industry itself is expected to reach $100 billion by 2020 growing at a compounded annual growth rate (CAGR) of about 14 percent, according to a study by the ASSOCHAM.

With the rise in buying capacity, the demand for petrochemical is also on a roll. Petrochemical products cover the entire spectrum of daily use items ranging from clothing, housing, construction, furniture, automobiles, household items, toys, agriculture, horticulture, irrigation, and packaging to medical appliances. This has given polymers the much-needed impetus in the country. While on one hand, the per capita consumption of polymer has reached its saturation level in US, India is expected to maintain high economic growth propelling India’s polymer consumption.

Further, considering petrochemical and oil & gas processes, the digital solutions implementation by the industry has suggested a low index (market industry studies) for the Industrial Internet Of Things (IIOT). One of the reasons for low adoption has been the lack of successful business cases. The other most important issue which is a top priority for the industry is managing cybersecurity. These issues continue to be a concern for the process industries.

As we focus on the petrochemical and oil & gas sectors for this month, we touch upon the various trends and market dynamics in the country.

Also as one of the landmark moves in India, the Goods and Services Tax (GST) came into effect on 1 July and the industry is busy preparing for one of the biggest tax overhauls in history. In the long term, the GST is said to bring good news for the chemical industry. The effects of the implementation are something that the industry will wait and see how it pans out.

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By Shivani Mody, 

Editor In Chief.

© Chemical Today Magazine

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