Finance Minister Nirmala Sitharaman urged the chemicals and petrochemicals industry to step up their efforts towards becoming a circular economy to help India's meet global sustainability standards.
"I would appeal to industry of chemical and petrochemicals to look at the ways in which sustainability and becoming a circular industry can be achieved and it is that suggestion which is actively is shared with us," Sitharaman said at Ficci's summit on Global Chemicals and Petrochemicals Manufacturing Hubs in India in New Delhi on Thursday.
The industry's sustainability effort will also aid India's ability to meet its renewable energy commitments. The country aims to be energy independent by 2047 and targets net-zero by 2070.
She urged the industries to also prioritise skilling of people and adoption of latest technology as it has a far-reaching impact on other sectors. The minister underscored that significant sectors—construction, packaging, textiles and agriculture—were influenced directly by the chemical and petrochemical industry.
She said India's sustainability parameters were "not up to global standards", denting the country's prospects to collaborate with global investors through joint ventures.
Sitharaman said the industry could look at recycling and reusability, efficient waste management and reducing the consumption of high emission resources. "We are very focused on green growth," she said. "Carbon intensity has to be reduced and, therefore, each one of the sectors will have to contribute towards this."
She also said the government will consider production-linked incentives for the chemicals and petrochemical industry to improve its manufacturing capabilities. "(We are) in favour of India becoming a manufacturing hub and will consider a PLI for chemical and petrochemical industry."
Organic and inorganic chemicals were the sixth most-exported commodity in the first quarter of fiscal 2024. Exports of organic and inorganic chemicals dipped from $8.2 billion a year earlier to $6.6 billion in the April–June, representing 6.7% export share.
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