Indian petrochemical producers are exploring specialty chemical investments and seeking technology tie-ups with foreign companies to reduce reliance on imports, industry participants said at the recently held India Chem 2026 conference in Mumbai.
"We are evaluating many specialty products. Apart from the commodity plastics, there is a huge deficiency in specialty chemicals in India, like engineering plastics," Indian Oil executive director Sumit Basu said on 23 October at a roundtable attended by executives and government officials from the petrochemicals sector.
"When the [free trade agreements] are being signed, the companies which have the [production] technology may be roped in to invest in India through formal joint ventures," Basu added. He pointed to partnerships between Chinese and global firms that have rapidly lifted China's chemical output, despite the country facing similar feedstock constraints.
India relies on imports for several chemicals, exposing it to supply-chain shocks from geopolitical crises such as the Iran war. The conflict upended global petrochemical markets to the point that New Delhi waived import duties on more than 40 chemicals from April to mid-July.
Technology transfer would be taken up with the commerce department as part of trade negotiations, said G Venkatesh, joint secretary of the department of chemicals and petrochemicals (DCPC).
Industry officials identified feedstock constraints and project viability as the main barriers to setting up new units. Indian integrated refiners consume most of their monomer output in downstream plants, making standalone units that supply monomers such as propylene commercially risky.
But with several Indian producers expanding their capacities, there is willingness to supply more of the feedstock to smaller producers.
"We would certainly be evaluating opportunities to share some of our feedstock," said Atul Khanwalkar, head of petrochemicals at Bharat Petroleum (BPCL), which is building a 1.2mn t/yr steam cracker at Bina in the central Indian state of Madhya Pradesh, alongside downstream polyolefin production units.
Several state-controlled petrochemical firms also urged New Delhi to streamline approvals for joint ventures and reduce delays in setting up joint ventures.
National feedstock policy
In response to supply uncertainty caused by the Iran war, India plans to create a national petrochemical feedstock policy, DCPC secretary Tejveer Singh said at the conference.
"I think this is something we would like to sit with the industry and the Chemicals & Petrochemicals Manufacturers' association (CPMA) and see how we can work on it," he said.
Disruptions from the war prompted several feedstock conservation measures in India, including diverting propane, butane and propylene to liquefied petroleum gas production. The curbs hit around 80pc of India's polypropylene output, according to Argus estimates.
