Budget 2025: The chemicals sector has faced multiple challenges during the year 2024. The channel destocking , weak demand, pricing pressure, all were key challenges faced. The Agri chemical manufacturers faced concerns led by unpredictable weather patterns and supply chain disruptions to growing sustainability pressure.
However, there has also been significant progress, particularly in agri-tech innovations and the government’s commitment to farmer welfare. Looking ahead to Budget 2025, there’s a valuable opportunity to build on this momentum.
Budget expectations for Agrochemicals
For the agrochemical sector, the focus should be on
1. incentivizing research into eco-friendly and latest new age solutions and PLI. Supporting small-scale farmers with better access to technologies and crop protection solutions will be crucial to increasing yields and reducing losses.
I am hopeful that the Budget will priorities (2).improving infrastructure to support rural communities (3) Expanding access to digital tools and technologies will empower farmers to make data-driven decisions, (4) enhancing productivity and food security. Additionally, (5) increased budget allocation for R&D will drive the development of novel products and solutions, enabling organizations to better meet the evolving needs of the sector.” said Mr. Rajesh Aggarwal, Managing Director, Insecticides (India) Ltd
Specialty chemicals expectations
Jashan bhumkar Director – Soujanya Group, the manufacturer in specialty chemicals and pharmaceuticals said that as as a specialty chemicals manufacturer, I am hoping and expecting the budget to bring several benefits, including:
- Increased Focus on Green and Sustained Economic Development*: The budget is likely to promote eco-friendly practices, driving demand for specialty chemicals used in battery and energy storage solutions, said Bhumkar
– 2. Investments in Infrastructure Development*: The government’s focus on infrastructure development, including industrial parks and corridors, can improve connectivity and logistics for specialty chemicals manufacturers
3.Promotion of Research and Innovation: The budget may allocate funds for research and development initiatives, encouraging innovation and growth in the specialty chemicals sector
4. Support for Exports: The government may introduce policies to boost exports, including specialty chemicals, to increase India’s share in the global market.
5.Production linked incentives looking forward to seeing a growing list of additions in the government’s PLI scheme
Overall, the budget is expected to create a conducive environment for specialty chemicals manufacturers to grow and thrive in India.
