Budget measures to boost chemical exports; shipments to cross Rs. 2,63,000 crore (US$ 30 billion) this fiscal: Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL)

The latest budget proposals, including reductions in import duties on essential raw materials and support measures for Micro, Small, and Medium Enterprises (MSMEs), aim to strengthen domestic manufacturing and boost chemical sector exports. The Basic Chemicals, Cosmetics & Dyes Export Promotion Council (CHEMEXCIL) expects chemical exports to surpass Rs. 2,63,000 crore (US$ 30 billion) in the current fiscal year, having already reached Rs. 1,86,000 crore (US$ 21.20 billion) between April and December 2024. CHEMEXCIL Chairman, Mr. Abhay Udeshi, emphasized the council’s focus on emerging markets and sustainable growth through ‘Green Chemicals’ and bio-based specialty chemicals. He highlighted that these initiatives and budgetary support will enhance manufacturing, facilitate trade, promote exports, and improve business efficiency. Key raw materials like phosphoric acid, boric acid, and sorbitol are set to benefit from reduced import duties, further aiding the sector. 

CHEMEXCIL will also recognize outstanding exporters on February 8, 2025, in Mumbai, Maharashtra, with the Union Minister of State for Health & Family Welfare and Chemicals & Fertilisers, Ms. Anupriya Patel, and Maharashtra’s Minister of Industries, Mr. Uday Samant, in attendance. Ms. Anupriya Patel encouraged the industry to adopt advanced technologies, sustainable practices, and value-added manufacturing. The Indian chemical industry, valued at approximately Rs. 19,27,000 crore (US$ 220 billion) in 2022, is projected to reach Rs. 26,28,000 crore (US$ 300 billion) by 2025 and Rs. 87,61,000 crore (US$ 1 trillion) by 2040. The sector employs over two million people with a diverse portfolio of over 80,000 commercial products. CHEMEXCIL, established by the Department of Commerce, is crucial in engaging with the government to develop export-driven policies that drive sectoral growth. 

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.