Energy, Oil & Gas

India to account for over 14pc of global polyethylene capacity additions by 2030

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Image by Aydinmutlu/ iStock

India is set to become the world’s second-largest contributor to polyethylene production capacity additions by 2030, after China, as the country seeks to reduce import dependence and meet rising domestic demand, according to GlobalData.

The intelligence and productivity platform estimates that India will account for more than 14% of expected global capacity additions by the end of the decade. Its latest report, “Polyethylene Industry Capacity and Capital Expenditure Forecasts with Details of All Active and Planned Plants to 2030,” identifies 13 upcoming projects expected to expand the country’s production capacity.

Demand is being driven by rapid industrialisation, urbanisation and infrastructure development, alongside growing consumption across packaging, construction, consumer goods and automotive manufacturing.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “India's polyethylene market is expanding rapidly, with consumption fuelled by key end-use sectors like packaging, construction, consumer goods, and automotive parts. Rising demand for flexible and rigid packaging, coupled with increased use of polyethylene in pipes, films, containers, and industrial applications, is strengthening the need for domestic capacity expansion.”

Among the planned developments, Bharat Petroleum Corporation’s Bina Polyethylene Plant (Swing) in Madhya Pradesh is expected to deliver the country’s largest capacity addition. The project is currently under construction and scheduled to begin operations in 2028, with Bharat Petroleum serving as the operator and holding full ownership.

The company is also planning the Bharat Petroleum Corporation Rasayani Polyethylene Plant 2 in Maharashtra, which is expected to commence production in 2030.

Meanwhile, Haldia Petrochemicals’ Cuddalore Polyethylene Plants 1 and 2 in Tamil Nadu are among the country’s other major planned capacity additions. Both projects are expected to come online in 2030, with Haldia Petrochemicals designated as their operator.

Roy said the projects would strengthen India’s petrochemical supply chain and improve security of supply for key industrial sectors.

“India’s upcoming polyethylene projects highlight the country’s strategic push to strengthen its petrochemicals value chain and improve supply security for key industrial sectors. With multiple large-scale plants scheduled to come online by 2030, India is well positioned to narrow its import gap, support rising domestic consumption, and emerge as one of the most important growth markets in the global polyethylene industry.”