Davos 2025 | Petrochemicals set to become $1 trillion industry by 2040: Andhra CM Naidu

Andhra Pradesh Chief Minister N Chandrababu Naidu highlighted the state’s robust growth in the petrochemicals sector, which is currently expanding at a compound annual growth rate (CAGR) of over 7%.

Speaking to CNBC-TV18 at the World Economic Forum (WEF) in Davos on Tuesday, January 21, 2025, Naidu shared his optimistic view that India’s petrochemical industry is on track to become a $1 trillion sector by 2040. The sector will play a critical role in driving economic growth and job creation in Andhra Pradesh, the CM added.

Naidu also revealed that the state is in discussions with public sector undertaking Bharat Petroleum Corp Ltd (BPCL) to secure a ₹90,000 crore investment for a new petrochemical plant in Visakhapatnam.

In addition, the state is focused on strengthening its infrastructure to support the rapidly growing petrochemical industry. Naidu further said that plans are underway to expand capacity at Andhra Pradesh’s 10 operational ports, which will be vital for both petrochemical and green energy exports.

Emphasising sustainability, Naidu pointed out the need for reforms in the fuel and energy sectors to ensure long-term growth. He also spoke about Andhra Pradesh’s ambition to produce one-third of India’s green hydrogen by 2030. The state’s green energy push is backed by investments from NTPC, which has committed ₹1.876 lakh crore over the next 7-8 years for renewable energy projects.

Naidu further highlighted that the state’s petrochemical sector, which has been in the works for the last decade, is now poised for innovation, growth, and job creation. He noted that first movers in this sector will have a significant advantage but will need to make considerable efforts to drive innovation and sustainability. The state is also focused on building the required infrastructure and downstream ecosystems to ensure long-term growth and success in the sector.