An Overview Of The Petrochemical Industry In India

The petrochemical industry is among the most important industries, producing both final commodities and raw materials for other industries. Several other major industries such as healthcare, textiles, agriculture, etc. are depending on the petrochemical industry. The chemical products delivered by the petrochemical industries constitute about a third of the basic chemical industry. Hydrocarbons are extracted from natural gas and crude oil. Then the petrochemicals are derived from these hydrocarbons.

The Petrochemical Industry In IndiaSeveral of the largest Indian companies such as BPCL, IOCL, RIL, ONGC, and GIL fall under the petrochemical industry. Gujarat, Kerala, Mangalore, Karnataka, and Maharashtra house some of India’s largest oil refineries. Apart from playing a direct role in the economy from the sale of the products, domestic production in the petrochemical industry is also important as it would help to reduce India’s dependency on foreign countries. Importing energy from the other countries drains away a major part of the forex reserves of the country. This affects the exchange rates, which implies that if the global oil prices increase, the import of other goods becomes costlier too. Moreover, diesel is crucial for goods transportation and a hike in diesel prices would affect the prices of even essential items such as food.

The Current Scenario In The MarketIn the year 1991, several economic reforms were introduced. By adopting liberalized policies, it brought about a major change in the domestic petrochemical industry. The current market scenario of the industry is as follows:

• It is expected that by 2022, the industry would reach 7 lakh crores and the CAGR would be around 14%.
• Around 30% of the raw materials in the chemical industry comes from the petrochemical industry. The value of these, materials is expected to reach about INR 17.5 lakh crores by this year.
• The petrochemicals industry, in general, sees substantial technological development. The petrochemical industry in India holds over 12% of the overall petroleum industry as of 2018.
• Polymer production is the major item that is manufactured accounting for a total production of 61% of the basic major petrochemicals.
• The petrochemical and polymer demand is expected to grow at 7.5% and 8% on a CAGR basis. While the demand for speciality chemicals is expected to grow at 12% CAGR.

Why Are Centrifugal Fans Important In Petrochemical Manufacturing?The equipment used in the petrochemical industry varies as much as the production processes do. The chemical substances at primary or derived levels undergo extensive treatment and processing. Centrifugal fans are used in processes such as producing fertilizers, plastic, alloys, paints, etc. Other uses include the processing of exhaust fumes and emissions.

What Are The Expected Market Trends In The Future?Renewable sources of energy are gaining popularity and many of the energy consumers might switch to them in the future. Many of the automobile industries are focusing on developing electric vehicles. This would reduce the demand for petroleum fuels in the transportation sector, one of the major consumers of petrol and diesel. However, the trend of increasing demand for petroleum products in various sectors is expected to continue for now. The market for petrochemical products still holds prospects.

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