Budget Measures to Boost Chemical Exports; Shipments to Cross $30 Billion This Fiscal: CHEMEXCIL

The budget proposals, including reductions in import duties on essential raw materials and support measures for MSMEs, will strengthen domestic manufacturing and boost chemical sector exports which are expected to surpass USD 30 billion this fiscal, CHEMEXCIL said on Thursday.

During April-December 2024, the chemical exports reached USD 21.20 billion.

CHEMEXCIL (Basic Chemicals, Cosmetics & Dyes Export Promotion Council) Chairman Abhay Udeshi said the council is focusing on emerging markets and promoting 'Green Chemicals' and bio-based speciality chemicals to align with global sustainability trends.

"These initiatives are set to boost exports significantly. The budget facilitates greater trade, boosts manufacturing, promotes exports, and enhances the ease of doing business," he said.

Duties have been proposed to cut on essential raw materials such as phosphoric acid, boric acid and sorbitol.

Udeshi also informed that the council will honour outstanding exporters on February 8 in Mumbai in the presence of Minister of State for Health and Family Welfare, Chemicals and Fertilizers Anupriya Patel, and Maharashtra's Minister of Industries Uday Samant.

Quoting Patel, the council said the industry should embrace cutting-edge technologies, sustainable practices and value-added manufacturing.

The size of the Indian chemical industry stood at about USD 220 billion in 2022 and is projected to reach USD 300 billion in 2025 and USD 1 trillion by 2040.

According to the council, the industry is diversified, covering more than 80,000 commercial products. It employs more than 2 million people, both directly and indirectly.

CHEMEXCIL is set up by the Department of Commerce to promote the export of chemical products. The council engages with the government to formulate export-oriented policies that support and enhance the sector's exports.