The government will soon bring an integrated policy to boost the growth of India's chemical sector currently estimated at USD 160 billion.
Addressing a CII conference here Wednesday, Chemicals and Petrochemicals Secretary P Raghavendra Rao said the new policy would aim to create an enabling environment for further growth of this sector.
"We are coming up with an integrated policy for both chemical and petrochemical sector," he said.
The draft policy has already been prepared and consultation process is on with the stakeholders to fine-tune it, he added.
The secretary said the policy would become a reality during this financial year.
Rao said the installed capacity of this sector is 22 million tonnes while production is 17-18 million tonnes.
He said about 9 million tonnes capacity is currently being added.
Stating that demand for chemicals is rising, Rao said there would be a gap of 7.5 million tonnes in ethylene alone.
The country needs new manufacturing plants to boost domestic output which would require huge investments, he said.
The new policy would focus on areas where the sector is lagging, the secretary added.
Talking about plastic, Rao said the problem is not plastic but the post-use of plastic. "Society is changing fast and everybody is adjusting," he added.
Development cannot be at the cost of environment as sustainability is important, he said.
Speaking at the event, CII National Committee on Chemicals Chairman Raman Ramachandran said the sector is currently valued at USD 160 billion and is growing at 8-10 per cent annually.
The sector will reach USD 300 billion by 2025, he added.
Ramachandran said the industry needs feedstock availability, infrastructure and enabling regulatory environment to fuel the growth of this sector.
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