India to emerge as second-largest contributor to global urea capacity additions by 2030

India is poised to witness significant urea capacity additions by 2030, driven primarily by the need to curb heavy import dependence, achieve self-reliance, and meet surging domestic agricultural and industrial demand. Accounting for about 13.7% of the expected global capacity additions by 2030, India is likely to emerge as the second-largest contributor to those additions, according to GlobalData.

GlobalData’s latest report, Urea Capacity and Capital Expenditure Outlook by Region, Countries, Companies, Projects and Forecast to 2030, shows that India is likely to witness urea capacity additions from six upcoming projects by 2030.

Nivedita Roy, Oil and Gas Analyst at GlobalData, comments: “India’s vast and intensive farming sector relies heavily on nitrogenous fertilizers to sustain crop yields for a growing population. The demand for urea in the country is also expanding beyond agriculture into manufacturing sectors, particularly for the production of urea-formaldehyde resins and plastics.”

The highest capacity addition in India is expected to come from an announced project in Jamnagar, Gujarat state: the “Reliance Industries Jamnagar Urea Plant”. Reliance O2C Ltd is the operator of this project, while Reliance Industries Ltd holds a 100% equity stake. The project is expected to start operations in 2030.

The Matix Fertilisers & Chemicals Panagarh Urea Plant 2 is another important project in India that is also expected to commence operations in 2030. Matix Fertilisers & Chemicals Ltd is the designated operator of this project in the West Bengal state and holds a 100% equity stake.

Other noteworthy projects in India include the Talcher Fertilizers Talcher Urea Plant and the Assam Valley Fertilizer and Chemical Namrup Urea Plant, proposed by Talcher Fertilizers Ltd and Assam Valley Fertilizer and Chemical Co Ltd, respectively, These projects are expected to come online in 2027 and 2029, respectively.

Roy concludes: “Overall, India’s upcoming urea projects underscore the country’s intent to build a more resilient and self-sufficient fertiliser supply chain. As demand rises from both agriculture and downstream industries, timely execution of these capacity additions will be critical to narrowing the import gap and supporting long-term domestic consumption needs. With several large-scale plants scheduled to begin operations before 2030, India is expected to strengthen its position in the global urea landscape while supporting domestic fertilizer availability, price stability, and agricultural security.”