Producers are expanding into higher-value chemicals and seeking overseas technology partnerships as supply vulnerabilities and feedstock constraints expose India’s reliance on imports.
India’s petrochemical producers are stepping up efforts to move beyond bulk products and into higher-value speciality chemicals, a shift that industry executives say could help reduce the country’s reliance on imports and widen the scope for foreign technology partnerships.
At the India Chem 2026 conference in Mumbai, Indian Oil executive director Sumit Basu said the domestic market still has a glaring shortage in speciality chemicals, particularly engineering plastics. He argued that overseas companies with advanced production know-how could find opportunities in India through joint ventures, especially as the country signs new free trade agreements. Basu pointed to China as an example of how partnerships between local and international firms can expand chemical capacity even when feedstock is limited.
The push comes as India continues to face supply vulnerabilities in a range of imported chemicals. Those pressures have been sharpened by geopolitical tensions, including the conflict involving Iran, which led the government to waive import duties on more than 40 chemicals for part of the April-to-mid-July period. Officials at the Department of Chemicals and Petrochemicals say technology transfer is now part of the wider policy discussion, with joint secretary G Venkatesh indicating that the issue will be taken up with the commerce department.
A recurring obstacle is feedstock availability. Many integrated refiners use most of their monomer output in captive downstream plants, leaving standalone producers exposed to supply uncertainty if they depend on inputs such as propylene. Bharat Petroleum Corporation Ltd’s petrochemicals head, Atul Khanwalkar, said the company would consider sharing some feedstock as it expands its own petrochemical ambitions. BPCL is building a 1.2-million-tonne-a-year steam cracker at Bina in Madhya Pradesh, along with downstream polyolefin units, a project that could broaden domestic supply. Indian Oil has also been deepening its petrochemical footprint, selecting Lummus Technology’s cumene process for a new 440,000-tonne-a-year unit in Paradip.
Private-sector companies are making similar bets. Deepak Chem Tech has opened a chlorination and speciality chemicals plant in Dahej, Gujarat, after investing about ₹300 crore, while Aarti Industries and UPL have set up a 50-50 joint venture to manufacture and market speciality chemicals for downstream industries. Shivtek Spechemi Industries has announced a ₹150 crore greenfield complex in Ankleshwar, Gujarat, which will include speciality chemicals production and work on cleaner fuel technologies such as methanol-to-gas and hydrogen for shipping. Industry participants say such projects underline a broader shift towards value-added chemicals as India looks to build scale, attract technology partners and reduce its exposure to overseas supply shocks.
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