Page 168 - CW E-Magazine (1-10-2024)

Special Report

Further, even while the per-hectare tioning of 12 Industrial Parks under the sustainability goals, Indian chemical
usage of agricultural chemicals in India National Industrial Corridor Develop- companies must place a greater em-
remains signifi cantly lower than in ment Programme, and development of phasis on research and development
most developed countries, its use of investment ready ‘plug and play’ indus- (R&D). Additionally, as global clients
chemical fertilisers has increased over trial parks with complete infrastructure seek to outsource complex new R&D to
the years and hence the thrust on natural in or near 100 cities. These reforms are strategic partners, India’s advantages in
farming is important from a health and expected to provide a signifi cant boost cost-effective manufacturing, process
nutrition standpoint. Implementation of to the production of basic and specialty expertise, and policies for protection
the same through scientifi c institutions chemicals, including those used in of intellectual property rights, posi-
and establishing bio-input resources is construction, paints, and adhesives. tion it as an attractive hub for contract
likely to foster innovation and growth The Budget has taken signifi cant steps research and manufacturing services.
of the agrochemicals industry. to strengthen the MSME segment by Recognising the importance of R&D
increasing the availability of credit for achieving self-reliance, the Govern-
Employment and skilling at competitive rates, introduction of ment of India has introduced reforms
As per the Economic Survey, 65% specifi c schemes to facilitate easier such as operationalizing the Anusandhan
of India’s fast-growing population loan processes and the extension of National Research Fund for foun-
is under 35, and many lack the skills credit guarantees. This will augment dational research and prototype deve-
needed by a modern economy. Fur- formalisation of smaller manufacturers, lopment, as well as encouraging private
ther, the 2022-23 Annual Report of alleviating supply chain bottlenecks, sector-led research through a fi nancing
the Ministry of Skill Development & facilitating market access and foster pool of Rs. 1 lakh-crore. These initia-
Entrepreneurship (MSDE) enumerates industrialisation. tives are very welcome.
challenges in the skilling and entre-
preneurship landscape in the country, Urban development Tax reforms
some of them being, inadequate impetus The government’s commitment to
to innovation-driven entrepreneurship affordable housing is set to positively Customs
and lack of assured wage premium for impact the chemical industry, stimu- Environmental sustainability is high
skilled people. lating the production and sales of con- on the Government’s agenda, and it is
struction-related and other chemicals. also important for the chemical industry
Budget 2024 places an increased to prioritise environmental conscious-
emphasis on job creation within the for- Infrastructure ness. The budget proposes to increase
mal sectors and skilling of new work- The Government’s focus on im- basic customs duty (BCD) on PVC Flex
force through internship programmes proving the country’s infrastructure Films from 10% to 25%. This is a mea-
in collaboration with private industry. continues with Budget 2024 increa- sure to curb its imports given that PVC
These initiatives are integral to the sing the capital investment outlay by is non-biodegradable and hazardous for
broader economic strategy aimed at 11% from previous Rs. 10 lakh-crore to health and environment.
curbing unemployment and cultivat- Rs. 11.1 lakh-crore. Further, the States
ing a workforce with advanced skills, have been encouraged to support in- To support both existing and new
which is essential for preserving a com- frastructure development by making a capacities, the budget proposes to increase
petitive stance in the international arena. provision of Rs. 1.5 lakh-crore towards the BCD on ammonium nitrate (from
This approach is instrumental in ad- long-term interest-free loans. The Govern- 2.5% to 5%). It was proposed to increase
vancing India’s goal to establish itself ment’s efforts towards infrastructure the BCD on laboratory chemicals from
as a leading global manufacturing hub. development are likely to greatly bene- 10% to 150% to curb certain malprac-
fi t the chemical sector. As logistical tice with respect to imports of ethyl
Focus on manufacturing and services hurdles are streamlined, the industry alcohol. However, to address the concerns
The Indian chemical industry which can anticipate reduction in costs and a of genuine users of lab chemicals, the
has been contributing positively to the boost in operational effi ciency. government has provided some relief,
GDP and gaining international promi- wherein BCD on import of chemicals
nence, is set to receive a further boost Innovation, research and development for R&D shall attract a 10% customs
through various initiatives aimed at To cater to the escalating global duty, subject to certain conditions.
enhancing the manufacturing and in- demand for specialized products and to
frastructure sectors. This includes sanc- be at par with global standards including Effective BCD on methylene diphenyl

168 Chemical Weekly October 1, 2024

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