Published on July 7, 2014
30 days of completion for the new government which was formed in the month of May 2014, the entire world is looking at India as a potential growth market and the new Prime Minister Narendra Modi pledges to more apart from enhancing the stock market. Moreover with the upcoming of Modi government the chemical industries are having sky high expectations from the budget and are eagerly awaiting for bigger picture.
However last year at the India Chem 2013 the new Prime Minister Narendra Modi had accentuated that if the petrochemical and chemical industry concentrate on doing little things effectively, which will ensure larger success keeping in both quality and quantity in mind, can upshot a change in the economy.
As a whole Pharmaceutical, Biotech & Lifesciences Industry is noted as one of the highest potential and energetic sectors of India and according to the industry experts this sector is least affected by policy and government changes, interest rates, commodities or prices, however as per the industry body, in past few Budget presentations the pharma industry had been overlooked.
According to the sources, with the coming of Modi government this sector are in hopes that the government will take a sensible, pro-business measures which will support the besieged CRO, Biotech and Pharma industries and indeed increase quantum growth. Moreover the industries are in hope for a Pharma friendly budget which can truly give a free rein to the budding of this sector and seize India to the next level.
If one looks at specific subjects in the sector, chemical sector relies on imports for transitional require for pharmaceuticals, pesticides, dyes, and many more, although the efforts are been taken to reduce import duties on feedstock like Industrial Alcohol, Toluene, Naphthalene, Xylene, etc. and also create domestic capacities. Whereas in the petrochemical sector the business milieus is quite challenging and in India the duty on petrochemical products are very low, however import is noted as one of the highest duty on key feedstock and thus spreading the duty between products.
In oil and gas sector, to finalise unforeseen event plans the Petroleum Ministry officials will meet officials of major oil and refinery industries such as Mangalore Refinery & Petrochemicals, Bharat Petroleum, Indian Oil and Hindustan Petroleum to embark upon any such crucial situation, according to the sources. Moreover as per the sources in the first week of July, 2014 the Modi Government will be presenting its first budget and ensures that no disturbance in oil supply will take place as it can rigorously affect the economic activity.
Hence according to the industry players, to boost import of cheaper feedstock and enable improved availability, most of the chemical industries covet the new government to implement zero duty on import of chemicals and hope that changes in tax rates or simplify cess or duty structure will be brought by the government.
