Indian petrochemicals will maintain strong growth through 2010

The Indian petrochemical industry has grown substantially over the past decade, with annual average consumption growth greater than 15% in many product segments. Market growth, however, has been surpassed by even more rapid capacity growth, which has led to a supply surplus in a number of key products.The significant capacity build-up of the late 1990s changed India from a net importer to a net exporter of petrochemicals as well as refined petroleum products. Continuing strong demand growth, however, will cause a supply deficit in a fairly short time.The macro pictureDuring the past decade, Indian industry has demonstrated vibrant growth even during the Asian financial crisis. Since the b...

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