The roll-out of the PLI schemes for key end-use sectors will boost petrochemical consumption in the country
The Chemical and Petrochemical industry has been demanding since long back for a reduction in import duty on feedstock such as ‘Naphtha’ to become globally cost-competitive for the production of Chemicals and Petrochemicals. This long-standing demand has been taken care of by the Government in the budget 2021-22. The industry associations of Chemicals and Petrochemicals have termed this Union Budget as a forward-looking and growth-oriented budget.
The massive emphasis on infrastructure spending is expected to result in additional consumption of petrochemicals like polymers and specialty chemicals. Also, Agriculture focused measures like doubling of outlay for micro-irrigation to Rs 10,000 crores will further fuel demand for polymer-based irrigation products and services.
The new vehicle scrapping policy will boost polymer and elastomer consumption in anticipation of the requirement of new and additional vehicles.
The increased outlay on healthcare and the fund for vaccination will boost polymer consumption with requirements of syringes and other polymer-based healthcare products.
The rollout of the PLI schemes for key end-use sectors will boost petrochemical consumption in the country. Among the sectors earmarked, seven sectors like mobile phone manufacturing, auto and components, medical devices, textile products etc., use a significant quantity of petrochemicals, the estimated outlay of Rs 1.41 lakh crores augurs well for the petrochemical industry growth.
The government has announced the opening up of seven mega textile parks in the country to boost the textile industry.
The synthetic Industry has welcomed the increase in import duty on raw cotton. This will support farmers to get better remuneration on cotton production and also eliminate cheap imports coming from neighboring countries. As such India is surplus of cotton and rather than exporting cotton.
