On this page
India’s propylene availability in 2026 is estimated at approximately 6 to 8 million tonnes, combining domestic output from refineries and petrochemical complexes with supplementary imports. Supply growth is largely incremental and linked to refinery throughput, fuel demand patterns, and operational optimisation rather than standalone propylene capacity expansion.
Most domestic propylene is produced as a secondary stream through fluid catalytic cracking units and steam crackers. As a result, output is indirectly influenced by transportation fuel demand, crude slate selection, and refinery operating severity. This structural linkage limits flexibility during periods of rapid downstream polymer growth.
Operating economics are driven by refinery margins, coproduct allocation priorities, and hydrogen balance considerations. Imports play a balancing role, particularly for polymer grade requirements when domestic availability tightens due to maintenance or feedstock constraints.
Downstream consumers increasingly seek predictable supply and tighter quality consistency as polypropylene, acrylic acid, and oxo alcohol chains expand.
Polymer grade material absorbs the largest share due to sustained polypropylene capacity growth. Chemical grade demand expands steadily with downstream diversification. Buyers place high importance on purity, sulfur limits, and olefin composition.
FCC and steam cracking dominate supply, creating indirect exposure to fuel and ethylene cycles. Dedicated dehydrogenation units attract interest for long term stability, though scale, capital cost, and propane availability remain limiting factors.
Polypropylene remains the dominant sink for propylene volumes due to continuous capacity additions. Chemical intermediates provide diversification and higher value conversion but require consistent quality supply.
Western India anchors domestic supply through refinery and petrochemical integration, supported by port access for imports.
Northern India concentrates polypropylene processing and downstream manufacturing, supplied largely via inter state logistics.
Southern India shows rising consumption tied to packaging and automotive components, with limited local production.
Eastern India remains a smaller consumption zone, dependent on long distance supply movements.
The supply chain begins with refinery and cracker operations, followed by separation, storage, and distribution via pipelines, rail, and road tankers. Cost formation reflects refinery economics, coproduct allocation, energy use, storage constraints, and logistics.
Imports supplement domestic supply during tight periods and are influenced by global olefin availability, freight rates, and terminal capacity. Buyers increasingly combine domestic contracts with import options to manage continuity risk.
The ecosystem includes refiners, petrochemical producers, polymer manufacturers, chemical processors, logistics operators, and regulators. Strategic positioning depends on integration depth, supply diversification, and long term downstream alignment.
Key themes include interest in on purpose production, infrastructure upgrades, storage expansion, and closer coordination between fuel and chemical planning. Investment decisions increasingly consider resilience rather than short term optimisation.
India’s propylene availability in 2026 is estimated at approximately 6 to 8 million tonnes from domestic production and imports.
Supply is largely dependent on refinery and cracker operations, limiting flexibility during periods of rapid downstream growth.
Polypropylene production accounts for the largest share, followed by chemical intermediates.
High capital cost, feedstock availability, and scale requirements slow adoption of dedicated production routes.
Buyers combine long term domestic contracts, import options, inventory buffers, and supplier diversification.
Explore Hydrocarbons, Petrochemicals, and Organic Chemicals Insights
View Reports
India Propylene Production Capacity and Growth Outlook
Thank you!
You will receive an email from our Business Development Manager. Please be sure to check your SPAM/JUNK folder too.
