Petrochemical Imports Impact India's Domestic Wealth

Published Date : Jul 09, 2015

India has been regarded as one of the largest importers of petrochemicals, which has resulted in sizeable outflow of capital. This has also impacted the economy due to lack of capacity to produce finished products and consequently imports, which has led to sub-optimal wealth creation.

 At a symposium organized by FICCI in association with Department of Chemicals and Petrochemicals, the secretary of the department commented that India has inadequate petroleum and gas reserves, but has rich coal reserves.

Even though, the country could not keep the demand for coal feedstock for its manufacturing and production plants. He further said, it was time that our country adopted advanced technology and modern exploration techniques to enhance coal gasification.

Although the core area of discussion of the symposium was potential of coal in chemicals and petrochemicals production and global developments, particularly in relation to China. The secretary further added, the area was privileged to be delicensed and received 100% FDI early, the true potential of the sector was never realized.

He also added, that India was importing petrochemicals and chemicals and further selling to other nations. These countries in turn, were exporting finished goods to India, weakening the country’s economy and also making a dent on local crafts.

As commented by Executive Director of Jubilant Lifesciences, India needs to bring in place a strategic approach for gasification of coal and the industry also needs to make investments for chemical coal.

With implementation of new policies, India is bound for higher production and record surplus productions within two years. He further added that the government should support coal based gas plants, like the one in Odisha.

Since coal constitutes ash in high proportion, technology would significantly help for coal gasification. The Director further stated that pricing which is done by Coal India should match global standards.