Page 183 - CW E-Magazine (25-2-2025)

Special Report

measures to bolster the electric vehicle expansions and privatization efforts input purchases, while others may
(EV) sector, particularly in battery will support self-suffi ciency and increase pesticide use as a risk-miti-
manufacturing. A key initiative is the push towards effi ciency. gation strategy. The fi nal demand
full exemption of Basic Customs Duty  Strong push for EVs, including cus- impact remains uncertain.

(BCD) on critical minerals such as toms duty exemptions on critical  No direct incentives for specialty

cobalt powder, lithium-ion battery waste, battery materials and PLI support chemicals signal a push for the sec-
and many other essential materials. for electronic components creating tor to stand on its own. This could
This move aims to reduce production a favourable investment climate for slow down India’s ambitions to
costs and stimulate domestic battery battery and electronics chemicals. position itself as an alternative manu-
manufacturing, thereby strengthening  Reduction in fertiliser subsidies could facturing hub to China.

the EV supply chain. The Budget also impact affordability for farmers,
adds 35 capital goods to the list of items especially for P&K fertilisers. The road ahead
exempt from customs duties, specifi - However, given India’s dependence For industry players in fertilisers,
cally targeting equipment used in the on imported raw materials for these crop protection, and specialty chemi-
production of lithium-ion batteries for fertilisers, domestic manufacturing cals, the 2025 budget presents a mixed
EVs. This measure is expected to lower may not see an immediate boost picture. While some sectors receive
manufacturing expenses and encourage without additional policy measures. policy direction, others will need to
investment in the EV sector.  Cut in crop insurance funding reassess strategies. Overall, we see this
(20%) could change farm spending as a signal for the sector to stand on its
Additionally, an Rs. 25,000-crore patterns on agrochemicals. Some own merit and drive global competitive-
PLI scheme has been introduced for farmers may reduce discretionary ness via business excellence measures.
electronic components, aiming to boost
local production and reduce reliance on ABOUT THE AUTHORS
Chinese imports.
Dr. Sudeep Maheshwari is a partner based in the
We believe these initiatives will Mumbai offi ce and a member of the fi rm’s Energy & Process
catalyse the nascent battery and electronic Industries Practice. He holds a Ph.D. in Chemical Engineering
chemicals sector. Opportunities around from the University of Minnesota. With over a decade of
manufacturing of electrodes, electrolytes, experience in consulting and industry, Sudeep has advised
membranes, casing material, and other C-suite clients in chemicals, oil & gas, and other industries
chemicals will become interesting to on critical areas such as business strategy, M&A, strategic
invest in. partnerships, supply chain transformation, operations
improvement, strategic sourcing, and large-scale program management. Prior to
Petrochemicals: No direct policy and joining Kearney, he worked at Schlumberger, where he played a key role in
incentives push developing and commercializing emerging technology platforms in the oil &
No major new incentives for petro- gas sector.
chemical capacity expansion have been
announced. The industry had antici- Viswanathan Rajendran is a seasoned consulting leader
pated policy measures to accelerate with over 20 years of experience, specializing in strategy,
domestic petrochemical production and growth, and organizational transformation. He heads
reduce import reliance, but the Budget Kearney’s Strategy, Growth, and Organization Transforma-
does not introduce any signifi cant reforms tion practice in India and has worked extensively across
in this space. Companies in the sector India, the UK, Europe, the US, and the Middle East.
will have to push for effi ciency and With deep expertise in corporate strategy, transformation,
innovation to rely on existing policies scenario planning, marketing & sales strategies, innovation,
and private capital for expansion. business planning, market entry, pricing, business process improvement, and
analytics, he has helped organizations navigate complex challenges and achieve
Key takeaways: What works & what sustainable growth. He is a graduate of the Indian Institute of Management,
doesn’t Bangalore, bringing a strong academic foundation to his strategic consulting
 Encouraging domestic fertiliser approach.
production through urea plant

Chemical Weekly February 25, 2025 183

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