Will India’s PVC Resin Market Surge by 8% to 5.5 MMT by FY27?
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Synopsis
The Indian PVC resin market is on the brink of transformation, with predictions of an <b>8 percent annual growth</b> leading to a total of <b>5.5 MMT</b> by FY27. This shift is fueled by strong end-user demand and supportive government policies, making it a critical time for stakeholders in the industry.
Key Takeaways
- Projected 8% growth in PVC resin demand by FY27.
- Domestic capacity to increase by 2.5 MMT.
- Import reliance expected to drop to 30%.
- Implementation of BIS standards to enhance quality.
- Potential anti-dumping duties to support local manufacturers.
New Delhi, June 5 (NationPress) The demand for polyvinyl chloride (PVC) resin in India is projected to increase by 8 percent annually, reaching 5.5 million metric tonnes (MMT) by FY27, according to a report released on Wednesday.
The PVC resin market has shown a robust growth trajectory, with a compound annual growth rate (CAGR) of 6.2 percent during FY20-FY25, culminating in a total of 4.7 million metric tonnes (MMT) last fiscal year.
This growth is driven by significant demand from end-user industries, buoyed by supportive government initiatives, as highlighted in the report by CareEdge Ratings.
Out of the total PVC demand in India, 95 percent is accounted for by suspension PVC resin, while the remaining 5 percent pertains to paste PVC resin.
According to Rohan Deshmukh, Assistant Director at CareEdge Ratings, the anticipated addition of 2.5 MMT of domestic capacity by FY27 is expected to more than double current production levels, subsequently lowering import dependency to an average of 1.4 MMT. This is projected to decrease imports from 62 percent in FY25 to 30 percent of overall domestic consumption by FY27.
Moreover, the expected implementation of BIS quality standards and the potential imposition of an anti-dumping duty on suspension PVC resin are likely to deter low-priced imports, aiding in the recovery of domestic prices, and potentially enhancing the PVC-EDC spread to approximately $500/MT in H2 FY26, Deshmukh noted.
Weak demand and surplus capacity in major global economies have led to significant dumping of cheaper PVC in India over recent years, which has pressured domestic prices and affected the profitability of Indian PVC manufacturers.
Looking ahead, the PVC-EDC spread is expected to remain under pressure, staying below $400/MT in H1 FY26, amidst ongoing demand slowdowns in key economies and escalating trade tensions, according to the report.
However, with the BIS quality standards for PVC resin imports set to take effect from the end of June 2025 and the anticipated anti-dumping duties pending final findings by the DGTR, the PVC-EDC spread is expected to improve to $500/MT in H2 FY26, providing a boost to Indian PVC manufacturers.
Point of View
We recognize the importance of the PVC resin market in India's economic landscape. The anticipated growth reflects not only industry demand but also the government's commitment to fostering domestic production. This development is crucial for reducing import dependency and enhancing the overall economic stability of the sector.
NationPress
11/06/2025
Frequently Asked Questions
What is the expected growth rate of India's PVC resin market?
The PVC resin market in India is expected to grow by 8 percent per annum.
What will be the total demand for PVC resin by FY27?
By FY27, the total demand for PVC resin in India is projected to reach 5.5 million metric tonnes (MMT).
What percentage of PVC demand is suspension PVC resin?
95 percent of India's total PVC demand pertains to suspension PVC resin.
How will the anti-dumping duty affect the PVC market?
The potential imposition of an anti-dumping duty is expected to curb low-priced imports and support domestic price recovery.
When will the BIS quality standards for PVC resin imports take effect?
The BIS quality standards for PVC resin imports are slated to become effective from the end of June 2025.
