India to see significant propylene capacity additions by 2030

India is on track to significantly expand its propylene production capacity to address the surging domestic demand from downstream industries and reduce heavy import reliance. The country is expected to account for more than 15% of global propylene capacity additions by 2030, according to GlobalData.

GlobalData’s latest report, Global Propylene Market: Key Trends, Product Analysis and Upcoming Projects to 2030, says that India is likely to witness total propylene capacity additions of 7.28 million tonnes per annum (mtpa) from 11 under-construction and eight pre-construction projects during 2026–30. 

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “A primary driver of India’s growing propylene capacity expansion is rapid urbanization and industrialization. Strong growth in end-use sectors—such as packaging, automotive, manufacturing, pharmaceuticals, and construction—continues to lift demand for propylene and its primary derivative polypropylene (PP). As consumer markets in the country expand, demand for PP-based products is also rising, from flexible packaging and car parts to medical goods.”

Key Indian companies spearheading these capacity additions include Indian Oil Corp Ltd (IOCL) and Bharat Petroleum Corp Ltd. IOCL is set to lead the capacity additions with four projects, three of which are likely to start operations this year and add a capacity of 1.66 mtpa. The fourth project is expected to come on stream in 2029 with a capacity of 0.65 mtpa. Meanwhile, Bharat Petroleum has three projects that are anticipated to add a total capacity of 1.45 mtpa by 2030.

Reliance Industries is another major player, with large-scale investment in the Reliance Industries Jamnagar Propylene Plant 3 in Jamnagar. The project will commence operations in 2030, with a capacity of 1.50 mtpa. With propylene demand set to rise sharply, these industry players are expanding capacity to move toward self-sufficiency by 2030.

Roy concludes: “The push to strengthen domestic manufacturing, alongside the government’s “Make in India” initiative, has spurred major investments in new and expanded propylene and polypropylene projects, thereby catalysing the capacity growth in India.”