India to account for 20% of global plastics capacity additions by 2030

India is set to substantially expand its plastics production capacity in the coming years as domestic demand continues to rise. Rapid industrialisation, urban development, and the expansion of the manufacturing sector are driving this growth. According to GlobalData, a leading data and analytics platform, India is expected to contribute around 20% of global plastics capacity additions by 2030, strengthening its role in the global plastics industry.

The company’s latest report, Global Plastics Market: Key Trends, Product Analysis and Upcoming Projects to 2030, indicates that India could add approximately 27.01 million tonnes per annum (mtpa) of plastics capacity between 2026 and 2030. These additions are projected to come from 22 projects currently under construction and 28 more in the pre-construction phase.

Nivedita Roy, Oil and Gas Analyst at GlobalData, explains that the anticipated surge in plastics production is largely being fuelled by strong demand from multiple industries. “Packaging represents the largest share of demand, supported by the rapid growth of India’s e-commerce and retail sectors. At the same time, the automotive industry is increasingly using plastics to improve efficiency and reduce vehicle weight. The consumer goods, electronics, and healthcare sectors are also contributing significantly to the rise in plastics consumption,” Roy notes.

Infrastructure development is another major factor supporting growth in India’s plastics sector. Large-scale projects such as smart cities and transport corridors require significant volumes of adaptable and durable plastic materials. In parallel, government-backed initiatives like “Plastic Parks” are helping establish localised manufacturing clusters. These initiatives aim to encourage innovation, reduce reliance on imports, and enhance India’s export capabilities.

Leading companies including Reliance Industries Ltd and Bharat Petroleum Corp. are at the forefront of this expansion. By increasing production capacities, these firms aim to meet rising domestic demand while strengthening India’s position in the global plastics market.