India is fastest-growing polymer compound market, expected to grow to USD 16 bn by 2031: Crisil

Mumbai: India has emerged as the world's fastest-growing polymer compound market, accounting for 13 per cent of a USD 75 billion industry, riding on increased manufacturing in automotive and electronics and infrastructure growth, says a Crisil report.

The domestic sector is expected to grow to USD 16.5 billion in FY2031, up from USD 9.9 billion in CY2025, led by demand from the automotive, power cables, telecom cables, water pipelines, and oil & gas pipelines segments, the report said.

Polymer compounding is a melt-blending process in which a thermoplastic resin is combined with additives and reinforcements such as antioxidants, UV stabilisers, flame retardants, glass fibres, or minerals to create materials with specific properties.


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These additives improve properties such as strength, stiffness, colour, flammability resistance, or electrical and thermal conductivity, depending on the end-use applications.

The global polymer compounding market stood at USD 75.53 billion in 2025, growing at a CAGR of 6.5 per cent from 2019. The market is expected to grow at a CAGR of 6.7 per cent through 2031, reaching USD 109.80 billion.

Technological advancements and rising demand for polymers in key end-use sectors, including automotive, construction, electrical appliances, wire & cables, and electrical & electronics, drive this growth. Because of their strong performance, lightweight, and cost-effectiveness, polymers are often used as alternatives to metal and mineral-based materials.

Crisil attributes the polymer compound sector's significant growth to rapid expansion across electricity networks, 5G fiberisation, water grids, city gas pipelines, and oil pipelines.

Crisil projects the Indian industry to more than double in just seven years, from USD 5.97 billion in 2019 to an estimated USD 10.73 billion by the end of 2026.

Karan Aggarwal, Director, BLS Polymers Limited, said, "The growth is being witnessed in the cables and wires segments as well as the water, oil and gas segments, owing to high demand and increased investments." BLS Polymers started operations in 2001 and has developed more than 120 formulations for specialised applications.