Industry Leaders React to Union Budget 2026-27: Chemical and Allied Sectors
Industry leaders from the chemical and allied sectors largely welcome the Union Budget 2026-27, highlighting its strong emphasis on manufacturing-led growth and fiscal discipline. The budget's focus on logistics, industrial infrastructure, advanced manufacturing, and green initiatives like Carbon Capture, Utilisation, and Storage (CCUS) is praised. Measures such as Rare Earth Corridors and customs duty rationalization are seen as boosting competitiveness and self-reliance. While some desired more targeted MSME support and green tech incentives, the overall sentiment is positive for India's sustainable industrial future.
The Union Budget 2026-27 has been largely applauded by leaders from India's chemical and allied industries, signaling a robust commitment to manufacturing-led growth and sustainable development. Vineet Agarwal of TCI highlighted the budget's fiscal discipline and scaled capital expenditure, reinforcing confidence in long-term investments and a stable policy environment. The emphasis on bolstering logistics through dedicated freight corridors, national waterways, and container manufacturing is expected to significantly reduce costs and strengthen industrial ecosystems, benefiting MSMEs and generating employment.TheThe budget's focus on advanced manufacturing, including ISM 2.0, semiconductors, AI, and digital platforms, is seen as laying the foundation for technology-driven supply chains. Green initiatives received significant attention, with Abhimanyu Roy of Avalon Consulting welcoming the ₹20,000 crore allocation for Carbon Capture, Utilisation, and Storage (CCUS) projects, while also desiring more specific support for MSMEs and reforms for inverted duty structures. Anurag Choudhary of Himadri Speciality Chemical lauded the establishment of Rare Earth Corridors and customs duty exemptions on critical inputs for EV and solar glass manufacturing, pushing India towards strategic independence in green technologies.Executives like Ketan Kulkarni of Allcargo Logistics praised the multimodal infrastructure development and the ₹10,000-crore SME Growth Fund, empowering smaller businesses. Vishal Sharma of Godrej Industries (Chemicals) acknowledged increased R&D funding but called for stronger fiscal incentives for capital-heavy green tech. Abhishek Shrivastava from Lubrizol noted the rationalization of customs duties on raw materials and the clarity on GST intermediary ruling as crucial for global competitiveness. Overall, the industry views the budget as a forward-looking blueprint for a resilient, innovation-led, and globally competitive manufacturing sector, aligned with the 'Viksit Bharat' vision, with timely execution being paramount to unlocking its full impact.
