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The government has said that increased emphasis on infrastructure spending in sectors like agriculture, healthcare and automobiles in the Budget 2021-22 will result in increased demand for petrochemicals like polymers and speciality chemicals in the country.

That apart, it said import duty cut on feedstocks such as naphtha for production of chemicals and petrochemicals will make the domestic products globally cost-competitive. The massive emphasis on infrastructure spending is expected to result in an additional consumption of petrochemicals like polymers and specialty chemicals. The agriculture-focused measures like doubling of outlay for micro-irrigation to Rs 10,000 crores will further fuel demand for polymer-based irrigation products and services.

Further, the government said the roll-out of the production-linked incentive schemes for key end-use sectors will boost petrochemical consumption in the country. Among the sectors earmarked, seven sectors like mobile phone manufacturing, auto components, medical devices and textile products use significant quantities of petrochemicals.