Industry leaders from chemicals, ports, packaging, mining and steel have outlined their expectations for Union Budget 2025
Industry leaders from chemicals, ports, packaging, mining and steel have outlined their expectations for Union Budget 2025, focusing on tax incentives, GST rationalization, R&D funding, PLI expansion, policy reforms and streamlined regulatory processes to drive sustainable economic growth.
ICN collates their expectations:
S.K. Chaudhary, Chairman, Safex Chemicals
“Since agricultural margins are meagre, farmers and industry stakeholders expect conducive measures to mitigate agri stress. Currently, a mismatch exists between what farmers are paid for their produce and what consumers pay. While farmers only receive one-third of the cost consumers pay for fruits and vegetables, it’s almost 80% for milk due to cooperatives and private dairies. Therefore, the Centre can consider creating a distinct board (like the NDDB) for farm produce via a National Cooperative Policy.
“Agri R&D outlays should be at least 1% of agri GDP from the current less than 0.5% since this will boost crop productivity. Enhanced R&D is crucial to develop climate-resilient seeds and pest-resistant crop varieties. Incentives should also be provided for private players to boost R&D.
“The annual PM-KISAN instalment should be doubled to Rs. 12,000 from the current Rs. 6,000. Small and marginal farmers could be given free crop insurance under the Pradhan Mantri Fasal Bima Yojana. The Centre could also lower the GST rate on pesticides to 5% from 18%. Finally, tax incentives could be announced for biofuel investments, creating demand for ethanol and boosting returns for farmers.”
Anand V. S., Managing Director, NOCIL Limited
“As we approach the Union Budget 2024-25, we request the government to continue their focus on investment in infrastructure that is expected to have a multiplier effect on the economy.
As far as the chemical industry is concerned, addressing inverted duty structures will support in enhancing the competitiveness of the industry, further incentivising investment in R&D is essential for developing sustainable practices and eco-friendly products.
Expanding Petroleum, Chemicals and Petrochemicals Investment Regions (PCPIRs) could attract investments and create jobs, while a focus on skill development would be crucial for preparing the workforce for future challenges. A budget that addresses these areas has the potential to support the growth of the chemical sector and contribute to India's broader manufacturing goals.”
S Sunil Kumar, Country President,Henkel Adhesive Technologies India
“As the Union Budget 2025 approaches, there is optimism surrounding the government’s ongoing focus on strengthening India's manufacturing sector. With the ‘Make in India’ initiative and PLI schemes gaining momentum, targeted support for advanced manufacturing technologies, R&D investments, and infrastructure development is expected to help Indian manufacturers compete globally.
“Furthermore, there is an expectation that the government will introduce measures to encourage energy-efficient operations. Tax benefits and subsidies for sustainable technologies like pollution control systems and water recycling solutions could drive greener practices, reducing operational costs and environmental impact while supporting India’s climate goals. Similarly, expanding regulatory support for renewable energy installations, such as solar, wind, and biomass solutions, could significantly reduce dependency on fossil fuels.
“India’s journey toward becoming a global manufacturing hub will be propelled by the development of robust digital infrastructure. Incentives for the establishment of smart factories, investments in 5G connectivity, and sustained support for technology-driven MSMEs will be instrumental in advancing this vision. Innovation clusters and skill development programs for advanced digital technologies will be key in preparing the workforce for a digitally enabled future. Finally, competitive tax structures, raw material support, and strategic initiatives for the chemical sector are expected to drive its continued growth and innovation.”
Ajit Kulkarni, VP and India Market Leader, AVEVA
“As India continues its journey to becoming a USD 5 trillion economy, the integration of industrial data and connected insights will be crucial in reshaping how industries operate. From manufacturing and energy to transportation and construction, leveraging real-time operational data enriched with AI can transform operations and improve productivity while accelerating progress towards India's ambitious target of achieving net-zero emissions by 2070.
Connected industrial ecosystems and data-centric approaches will be key to empowering industries to manage energy use more efficiently while fostering a circular economy. By embracing unified data platforms and intelligent analytics, Indian businesses can better manage risk, foster collaboration, and drive commercial agility and responsible growth, even in volatile times.
To achieve this potential, India must prioritise strategic investments in digital infrastructure while building a workforce skilled in data analytics and emerging technologies. Through industry-academia partnerships and cross-sector collaboration, India can position itself as a hub for industrial innovation and sustainability.”
Girish Aggarwal, Managing Director, APM Terminals Pipavav
“India’s maritime sector is on the threshold for transformative growth, strengthened by policies like the National Logistics Policy and the Maritime India Vision 2030. The sector has a remarkable foundation and can benefit further with focused policy interventions to fully unlock its potential.
The Union Budget 2025-26 can play a pivotal role by granting infrastructure status to the shipping industry, enabling access to affordable, long-term financing for port modernization. Additionally, incentivizing green initiatives—such as renewable energy adoption, carbon-neutral operations, and digital transformation—will empower port operators to support India’s net-zero commitments while enhancing competitiveness.
At APM Terminals Pipavav, we remain steadfast in our commitment to operational excellence, sustainability, and contributing to a trade ecosystem that drives economic growth and reinforces India’s leadership in the global maritime sector.”
Jay Deepak Shah, CEO & MD, Jay Wood Industry
"As we approach Budget 2025, the SME sector in manufacturing and packaging, holds high expectations for transformative growth. The Indian green packaging market is projected to grow at a CAGR of 6.52% from 2024 to 2032—demonstrating the significant potential for growth in sustainable packaging.
With increasing industrial activity, urbanization, and a rising demand for sustainable packaging, SMEs are well-positioned to enhance India's global competitiveness. Government initiatives like ‘Atmanirbhar Bharat’ and ‘Make in India’ are fostering innovation and strengthening the backbone of the economy—small and medium enterprises. Sustainability will continue to be a central focus, with measures such as Extended Producer Responsibility (EPR) and initiatives to reduce plastic waste paving the way for biodegradable and recyclable packaging solutions. By 2025, we expect to see stronger support for eco-friendly practices, accelerating the transition to a circular economy and promoting green manufacturing.
At Jay Wood Industry (JWI), we are committed to driving this transformation. Our dedication to manufacturing sustainable wooden pallets using responsibly sourced materials and energy-efficient processes underscores the vital role SMEs play in advancing green innovation. We hope that Budget 2025 will introduce incentives for sustainable practices, strengthen SME-friendly policies, and encourage investment in green technologies, further empowering the sector. We are optimistic about the future and ready to lead the shift towards sustainable growth, championing a united movement for a greener and more sustainable future in the industry."
Nikhil Mansukhani, Managing Director, MAN industries
"India's steel industry is on the brink of transformative growth, with domestic demand projected to rise by 9-10% in FY25. The National Steel Policy's vision of achieving 300 million tonnes of production capacity by 2030-31 underscores the immense potential of the sector.
The upcoming Union Budget is a critical opportunity to introduce targeted measures that can accelerate this growth. Incentives for sustainable steel production, modernization of manufacturing facilities, and increased support for infrastructure projects could serve as game-changers. Additionally, policies that promote exports and improve logistics would further cement India’s status as one of the leading steel producers globally.
By fostering innovation and building capacity, the Budget has the potential to not only strengthen the steel sector but also drive growth across allied industries like energy, construction, and transportation. This would contribute significantly to India’s economic progress and global competitiveness.
In addition to that, India has launched an anti-dumping probe into imports of hot rolled flat products originating in or exported from Vietnam after complaints that they were being sold at low prices, hurting the interest of the domestic steel industry. If the Antidumping measures came into effect, certainly this will further strengthen the whole Steel Industry.”
Sanjay Choudhari, Chairman, SBL Energy
"The industrial explosives sector is a cornerstone for India’s mining and infrastructure ambitions. As we look to the Union Budget 2025, we hope for significant investments in large-scale infrastructure projects, especially in sectors like railways, highways, and mining, which directly drive demand for industrial explosives.
The rising cost of raw materials, particularly ammonium nitrate, remains a pressing challenge. Rationalizing import duties or introducing tax incentives on key inputs would provide much-needed relief and enhance competitiveness.
In line with India’s sustainability agenda, the government should encourage innovation in eco-friendly explosives technologies through targeted R&D incentives. This will enable the sector to align with environmental goals while maintaining operational efficiency.
Reforms aimed at simplifying regulatory frameworks, particularly around licensing and safety compliance, will foster a more conducive business environment. With the right support, the industrial explosives industry is well-positioned to accelerate the country’s industrial and infrastructure growth, contributing significantly to the vision of a self-reliant India."
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