As the government takes office for the third time in a row, we anticipate policy continuity. We anticipate a renewed emphasis on manufacturing, job growth, and infrastructure development.
India wants to be a hub for exports, and by 2030, it wants to export $2 trillion worth of goods and services. Reducing the tariffs on raw material imports and making sure the necessary building blocks are in place, particularly for the manufacturing sector, can make this achievable. Furthermore, enforcing strict anti-dumping regulations will guarantee fair competition for domestic producers.
We think the budget will make sure that the government stays true to its commitment to the chemical industry in particular and the manufacturing sector as a whole.
Currently, chemicals account for 7% of GDP, with India being the world’s sixth-largest producer of chemicals. By 2025, the chemical industry is expected to reach $300 billion, and by 2040, $1 trillion.
In order to spur growth for both new and existing facilities, we hope that the budget will be primarily focused on introducing PLI into the chemical and petrochemical sector. India will also catch up to other manufacturing hubs with the establishment of high-quality infrastructure and chemical hubs with centralized waste and effluent treatment systems. This will guarantee that the industry plays a significant role in India’s economic success going forward.
