According to the TechSci Research report, the India Ethylene Market achieved a total market volume of 6,127.51 thousand metric tonnes in 2024 and is projected to reach 7,206.77 thousand metric tonnes by 2030, expanding at a CAGR of 2.81% during 2025–2030. The market is supported by growing demand from polyethylene production, plastic packaging, chemicals, synthetic fibres, construction, automotive, agriculture, and real-estate applications.
“The India Ethylene Market is a core part of the country’s petrochemical value chain, supplying the feedstock required for plastics, chemicals, synthetic fibres, packaging, and industrial materials.”
India’s ethylene market reached 6,127.51 thousand metric tonnes in 2024 and is expected to grow to 7,206.77 thousand metric tonnes by 2030. The market is forecast to expand at a CAGR of 2.81% during 2025–2030.
Polyethylene is the fastest-growing application segment, while West India is the largest regional market. Naphtha is the dominant feedstock used for ethylene production in India.
→ Market volume in 2024: 6,127.51 thousand metric tonnes
→ Market volume in 2030: 7,206.77 thousand metric tonnes
→ CAGR during 2025–2030: 2.81%
→ Fastest-growing segment: Polyethylene
→ Largest market: West India
“Ethylene demand is expected to remain tied closely to India’s packaging, infrastructure, manufacturing, chemical, construction, and consumer-goods growth.”
Ethylene is a hydrocarbon gas and one of the most important building blocks of the petrochemical industry. It is used as a feedstock to manufacture plastics, synthetic fibres, chemicals, packaging materials, pipes, containers, automotive components, detergents, surfactants, and industrial products.
Ethylene is particularly important because it is the main raw material used to produce polyethylene, one of the world’s most widely used plastics. Polyethylene is used in packaging films, bottles, bags, containers, pipes, agricultural films, household goods, healthcare products, and construction materials.
Ethylene is also used to produce ethylene oxide, ethylene glycol, polyethylene terephthalate, polyester fibres, and other chemical derivatives used in textiles, automobiles, construction, consumer goods, and industrial manufacturing.
“Ethylene is not usually a consumer-facing product, but it is a critical raw material behind many everyday materials, from food packaging and plastic containers to polyester clothing and water pipes.”
The primary driver is growth in India’s plastics industry. Ethylene is used to manufacture polyethylene and other plastic products required for packaging, consumer goods, agriculture, construction, retail, logistics, healthcare, and e-commerce.
The expansion of packaging demand is especially important. Population growth, urbanisation, greater consumption of packaged goods, food delivery, e-commerce, organised retail, and consumer-product manufacturing are increasing the use of polyethylene packaging films, bottles, bags, containers, and flexible packaging materials.
India’s chemical manufacturing industry is another significant source of ethylene demand. Ethylene derivatives are used to produce detergents, surfactants, pharmaceutical intermediates, industrial chemicals, resins, and specialised materials.
The textile sector also supports ethylene consumption because ethylene-based inputs are used in polyester and other synthetic fibres. Polyester is widely used in clothing, sportswear, home textiles, technical textiles, automotive fabrics, geotextiles, and industrial materials.
“Ethylene demand is rising because it sits at the beginning of several major industrial chains: plastics, packaging, chemicals, polyester fibres, and construction materials.”
Polyethylene is the fastest-growing segment because it is used across a broad range of high-volume applications. It is valued for flexibility, strength, durability, chemical resistance, ease of processing, and potential recyclability.
Packaging is one of the most important polyethylene applications. Polyethylene is used for food packaging, films, pouches, plastic bags, bottles, containers, bulk packaging, and e-commerce protective packaging.
The construction sector also uses polyethylene for pipes, insulation, protective materials, geomembranes, and water-management systems. In agriculture, it is used in mulch films, greenhouse covers, irrigation pipes, and other products that can support water efficiency and crop production.
“India’s retail, e-commerce, agriculture, infrastructure, and consumer-goods sectors are all increasing demand for polyethylene, making it the most important growth engine for ethylene consumption.”
Ethylene is used to manufacture polyethylene, which is widely used in packaging, pipes, containers, consumer products, agricultural films, and construction materials. It is also used in the production of polyvinyl chloride and other plastic-related materials.
In chemical manufacturing, ethylene is used to produce ethylene oxide and ethylene glycol. These products are used in detergents, surfactants, pharmaceutical applications, sterilisation processes, industrial formulations, and polyester production.
In the textile industry, ethylene is important for producing polyester and polyethylene terephthalate-based fibres. These synthetic fibres are used in apparel, sportswear, uniforms, home furnishings, geotextiles, automotive textiles, and industrial fabrics.
→ Plastics: Packaging films, containers, pipes, bottles, agricultural products, and consumer goods
→ Chemicals: Ethylene oxide, ethylene glycol, detergents, surfactants, and chemical intermediates
→ Textiles: Polyester fibres, PET fibres, apparel, home textiles, and technical textiles
“Ethylene supports both mass-market plastic products and higher-value industrial sectors such as synthetic textiles, chemicals, pharmaceuticals, and automotive materials.”
Naphtha is the dominant feedstock in India’s ethylene market because it is widely available through crude-oil refining and is compatible with established steam-cracking facilities.
Steam cracking converts hydrocarbons such as naphtha and ethane into ethylene. Naphtha is a preferred choice for many Indian producers because of the country’s refinery and petrochemical infrastructure, availability through crude-oil processing, and the adaptability of naphtha crackers.
However, naphtha pricing is closely linked to crude-oil markets. Changes in global oil prices, feedstock availability, supply-demand balances, and geopolitical conditions can directly affect the cost of ethylene production.
“The dominance of naphtha provides an established production route for India, but it also exposes producers to crude-oil price volatility and feedstock-supply risks.”
The ethylene price in India is influenced by the cost and availability of naphtha, natural gas, crude oil, refinery production, supply-demand conditions, import availability, logistics, and foreign-exchange movements.
Ethylene is generally traded as a bulk industrial feedstock rather than a retail product. Its price can vary by contract terms, production source, purchase volume, delivery location, purity, storage requirements, and transportation method.
For an accurate current ethylene price in India, industrial buyers typically need to request a supplier quote specifying the required volume, delivery point, contract duration, and intended application.
“Ethylene prices are closely connected to naphtha and crude-oil markets, which means feedstock volatility can quickly affect downstream plastics, chemicals, and polyester production costs.”
West India is the largest regional ethylene market because Gujarat and Maharashtra have major refineries, petrochemical complexes, chemical-manufacturing facilities, plastics-processing clusters, ports, and downstream industrial users.
Gujarat has some of India’s largest petrochemical and refining operations, providing manufacturers with access to feedstocks such as naphtha and natural gas. The region’s proximity to major ports also supports import of feedstock and export of ethylene derivatives, plastics, and chemical products.
West India’s industrial base includes packaging, chemicals, paints, coatings, adhesives, automobiles, plastics processing, construction materials, and consumer goods. This concentration of downstream users supports sustained ethylene demand.
“West India leads the market because it combines refinery capacity, petrochemical infrastructure, downstream manufacturing demand, and strong logistics connectivity.”
The growing adoption of ethylene carbonate is an important trend. Ethylene carbonate is used in lithium-ion battery electrolytes, electronic components, specialty chemicals, and industrial formulations. Its relevance is increasing alongside demand for energy storage, consumer electronics, and electric mobility.
Another key trend is rising construction and real-estate demand. Ethylene-derived polyethylene is used in pipes, insulation, water systems, protective films, and construction-related materials. Affordable housing projects, infrastructure investment, urbanisation, and smart-city development are supporting this demand.
Sustainability is also becoming more important across the petrochemical value chain. Producers and downstream users are focusing on recyclable materials, efficient manufacturing, lower emissions, improved waste management, and circular-economy solutions for plastics.
“The market is no longer driven only by conventional packaging: battery materials, electric mobility, infrastructure, recycled plastics, and sustainable production are broadening ethylene’s future opportunity.”
Feedstock availability and pricing are major challenges. Ethylene production depends heavily on naphtha and natural gas, and changes in global crude-oil prices or feedstock supply can affect producer margins, production planning, and the cost of downstream products.
Environmental compliance is another important challenge. Ethylene production can be energy intensive and may affect air and water quality if not managed effectively. Producers must invest in emissions-control systems, energy efficiency, waste management, cleaner technologies, and regulatory compliance.
“The future competitiveness of India’s ethylene market will depend on securing cost-effective feedstock while improving energy efficiency and environmental performance.”
Reliance Industries Limited | Indian Oil Corporation Limited | GAIL (India) Limited | ONGC Petro Additions Limited | Haldia Petrochemicals Limited
These companies operate across refining, petrochemicals, natural gas, ethylene production, polyethylene, polymers, and other downstream chemical-value chains.
“Leading ethylene manufacturers compete through cracker capacity, feedstock access, refinery integration, downstream polymer production, logistics strength, operational efficiency, and product reliability.”
In 2023, Nayara Energy announced plans to enter the petrochemical sector with a polypropylene plant, responding to strong domestic demand. India consumed approximately 6.4 million tonnes of polypropylene during the April 2022–March 2023 financial year, with around 25% of demand, or 1.6 million tonnes, met through imports.
HPCL also pursued major petrochemical expansion projects, including a planned 9 million tonnes-per-year refinery and petrochemical complex in Rajasthan. HPCL-Mittal Energy Limited previously commissioned a 1.2 million tonnes-per-year petrochemical cracker in Punjab.
These investments reflect growing confidence in India’s downstream petrochemical opportunity, but they also highlight the need for careful capacity planning as new supply enters the market.
“New refinery, cracker, and polymer capacity is intended to reduce import dependence and serve growing domestic demand, but producers must balance expansion with inventory management and market conditions.”
The India Ethylene Market is expected to grow steadily through 2030, supported by demand for polyethylene, packaging, chemicals, synthetic fibres, construction materials, automotive components, agriculture products, and consumer goods.
The strongest opportunities are likely to emerge from polyethylene production, e-commerce packaging, infrastructure development, synthetic textiles, ethylene carbonate for battery applications, and downstream chemical manufacturing.
At the same time, producers will need to manage feedstock volatility, environmental requirements, technology investment, and competitive supply dynamics. Companies with strong refinery integration, secure feedstock sourcing, efficient crackers, downstream polymer capability, and sustainable production strategies are likely to be best positioned for growth.
“India’s ethylene market will remain fundamental to the country’s industrial development, serving as the chemical starting point for plastics, packaging, fibres, construction materials, energy-storage inputs, and a growing range of downstream products.”
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