STATEMENT
“While Budget 2021 outlined the importance of being self-reliant through measures introduced to boost local demand, we look forward to Budget 2022 continuing to support the chemical industry’s growth. Considering that the chemical industry is a critical and integral part of the growing Indian economy and presents enormous opportunities of attracting investment and creating jobs in the near future, the government’s initiative to sanction PLI Scheme for Chemical Manufacturers will help us convert challenges to opportunities, especially in view of China+1 strategy of the western chemical players. Extending the PLI Scheme for value-added chemicals will bring in new projects, realign the supply chain from China to India thus making India a major chemical manufacturing hub globally.
As an industry, we must focus on sustainable products and solutions that not only act as green alternatives but will also help us overcome several of the existing challenges like wastage of materials and combating climate change challenges. Government must incentivize the use of clean energy and eco-friendly solutions in order to encourage the private sector to grow sustainably. Despite facing serious volatility in raw material prices and availability in the past few quarters, we expect the growth of specialty chemical to continue and are quite optimistic of improving our performance. Considering the textile industry imports a large quantity of Siloxanes (silicone softeners used in textiles), BCD (Basic Customs Duty) reduction from the current 7.5% to 5% will go a long way to support and sustain the local textile industry in comparison to our neighbouring countries like Bangladesh that currently have the competitive edge. We also see margin for BCD reduction in the Animal Health & Nutrition space, as there is a strong need to reduce the BCD on pet food imports from the current 20% to 7.5%. This will encourage more adoption of pets and thereby fuel the growth in the pet care industry.
Lastly, while domestic production receives a boost from the government, it is essential to also set up a good base for exporting and bringing in more revenue to the country. Hence, we seek a budgetary allocation in the Remission of Duties and Taxes on Exported Products (RoDTEP) Scheme so that the chemical sector can also be put under the purview of the scheme. As a result, this would boost the exports by making Indian products more viable and appealing to international buyers. In line with this, we look forward to a rationalization of duty structure (with nil or low rate on feedstocks and basic building blocks) as the duty could be higher for certain intermediates and further higher for finished chemicals. This ladder-up approach for the duty structure will truly help India become more competitive in the global specialty chemicals market.”
- Mr. Ketan Sablok, Group Chief Financial Officer, Rossari Biotech Ltd.
fine chemicals manufacturer
ReplyDeleteLife Chem Pharma is a supplier and manufacturer of fine chemicals. We offer fine chemicals for scientific applications. Customers who need a trusted partner in the development and production of their products will find a variety of options.