India must increase its petrochemical output to prevent China’s dominance, says Reliance, says Reliance

India’s petrochemical demand for now is a small part of the global average, but the consumption of the country will rise as the economy grows.

India must increase its petrochemical production capacity to meet the local and global demand and to contain the growing dominance of China of the sector, said a senior reliance industries officer on Friday.

Petrochemical margins have shrunk all over the world because China’s capacity expansion has created a surplus. For some of his refineries, up to 40 percent-50 percent of their output PETchems can be, more than double typical capacity levels in India.

India’s petrochemical demand for now is a small part of the global average, but the consumption of the country will rise as the economy grows.

The economic growth of India is the highest of every major economy, while that of China stagnates and has reached the demand for gasoline and gasil, many analysts say. In India, the use of the two automatic fuels is still rising, although the country wants to move to cleaner fuels at a slower pace.

Vikram Sampat, senior vice-president, strategy and business development, for the polyester chain in Reliance Industries, an industrial conference told that China “took over the entire petrochemical industry” and India had to take action.

“If we don’t do it, China will continue to grow,” he said.

Sampat said that Reliance has a petrochemical intensity, or production capacity in its general refinement portfolio of 20 percent.

Analysts say that Indian refineries will increase their focus on petrochemicals in order to maintain margins and growth because the demand for fossil fuel transport fuels are approaching its peak in the coming years.

Sampat said that he expects refineries to reduce 30 percent – 50 percent of gasoline yield to petrochemical production if the gas question peaks. If Diesel’s question peaks, the share of the output that goes to petrochemicals could rise to 50 percent – 70 percent.

Published on July 11, 2025