Need to boost the chemical industry in India

Budget 2021: Need to boost the chemical industry in India with conducive export policy

By Vinati Saraf Mutreja,

The specialty chemical sector in India has been one of the few sectors that have remained largely unfazed by the ongoing Covid-19 slowdown. A changing geopolitical hegemony and realignment of global supply chain preference from China to elsewhere will drive growth in this sector over the next decade.

The Government’s production-linked-incentive scheme and push for “Atmanirbhar Bharat” will continue to create demand for the industry as it spans across most manufacturing sectors. Time is apt to further boost the chemical industry in India by creating a conducive policy structure for export and technological transfer. The government should consider a budgetary allocation for promoting technology that would help domestic industries for rising to global standards.

Similarly, the allocation for building a robust infrastructure to support clusters on a PPP model would help in bolstering the manufacturing capabilities of the sector. Import duties on a few key substances should also be reevaluated to maintain the export momentum.

Finally, R&D needs to be in the center stage as it will help India’s chemical industry to grow and become more competitive.

(Author is MD & CEO of Vinati Organics Limited)