Ahead of Union Budget 2025, which will be presented by finance minister Nirmala Sitharaman on 1 February, the packaging and allied industries have put forward their suggestions and demands.
UFlex Limited, a multinational flexible packaging and solutions company, has demanded progressive measures in the Union Budget 2025-26 to bolster sustainability in the packaging industry.
“Tax incentives on eco-friendly materials and support for a circular economy, such as subsidies for advanced recycling units, and incentives for meeting Extended Producer Responsibility (EPR) targets, could significantly accelerate the transition to greener practices,” Jeevaraj Pillai, director, sustainability and president, flexible packaging and new product development, Uflex, said.
Promoting investment in recycling infrastructure is crucial, and this can be achieved through measures like allowing investments in recycling under corporate social responsibility (CSR) provisions and providing interest subvention for loans availed to set up recycling facilities, Pillai said.
“Fund allocation for the sensitization of solid waste management rules can infuse segregation practices, reducing littering and landfilling. Additionally, increasing the allocation to Urban Local Bodies (ULBs) for investments in Municipal Solid Waste (MSW) automatic segregation and sorting plants will create essential feedstock for recycling infrastructure.”
The government’s focus on renewable energy and energy-efficient manufacturing should also extend to the packaging sector, enabling the industry to reduce its carbon footprint while maintaining global competitiveness, he said.
“Additionally, production-linked incentives (PLI) for the packaging industry, as an extension to the food processing segment already under PLI, will further enhance sustainable practices in the industry. Funding for R&D in sustainable packaging and incentives for biodegradable and plant-based alternatives would also position India as a leader in eco-friendly manufacturing.”
“We also urge the inclusion of infrastructure support for recycling clusters and export incentives for sustainable packaging solutions, which would help drive economic growth while addressing environmental concerns. A dedicated focus on these areas in the upcoming budget can align the industry with India’s broader sustainability goals and ESG commitments,” Pillai said.
Recycling sector
Amit Tandon, founder and CEO, PolyCycl, a a circular economy technology company, has put forward his suggestions on the plastic recycling sector’s expectations.
Tandon said it is crucial to recognize the potential of plastic recycling in the circular economy, especially in terms of waste management and sustainability. “Plastic consumption in India is about 20 million tons per annum and the country generates approximately 10.2 million tons of plastic waste annually. Only around 60% of plastic waste generated is managed formally. Of the plastics that are recycled, less than 5% are recycled in a closed loop to produce high-quality recyclates. Such closed-loop recycling needs to be bolstered to 34% to meet the stipulated EPR targets on incorporation of recycled content.”
Chemical recycling technologies, Tandon said, have a transformative potential to address the challenge of recycling waste plastics such as hard-to-recycle single-use plastics and reduce plastic pollution in India. Achieving this vision will require a collaborative effort between the government and industry to foster innovation and bolster the sector’s capabilities.
“We recommend the government to establish a Rs 1,000-crore fund for providing low-interest and collateral-free loans for implementing chemical recycling plants, including first-of-its-kind (FOAK) projects. We also anticipate a 0% GST on ISSC-certified pyrolysis oils produced through the chemical recycling of waste plastics, where these oils are used as circular feedstock for creating new plastics. Launching a Product Linked Incentive (PLI) Scheme, especially for scaling the implementation of chemical recycling plants that deal in single-use plastics to produce circular chemical feedstock, will further bolster these efforts.”
Additionally, providing incentives and grants for R&D companies researching advanced recycling technologies and making plastics circular can drive innovation and enhance the industry’s capabilities. We are optimistic and look forward to a budget that promotes long-lasting and impactful growth in the plastic recycling industry.
Logistics industry
On the other hand, Dhruv Taneja, founder and CEO, Matchlog Solutions, a prominent industry leader in the logistics and ecosystem, which is crucial for any industry, says the Union Budget 2025 presents an unparalleled opportunity to address India’s high logistics costs, which currently stand at 14% of GDP, compared to the global benchmark of 8–10%.
“While infrastructure development has been a priority, the focus now needs to shift towards efficiency-driven policies. We urge the government to introduce fiscal incentives for logistics startups innovating in route optimization, multimodal connectivity, and empty container reduction. Tax rebates for businesses adopting AI-powered supply chain solutions and green technologies, such as EVs and alternative fuels, will accelerate sustainability in logistics.”
Additionally, the implementation of a unified National Logistics Policy should include targeted investments in digital freight corridors and grants for startups integrating blockchain and IoT for real-time tracking and transparency, he said.
“Streamlining regulatory approvals across states for freight movement will also reduce bottlenecks and improve turnaround times. At MatchLog, our mission is to minimize inefficiencies like empty container trips, and we have seen how digitalization can reduce costs and carbon emissions significantly. A transformative budget that champions tech adoption and sustainable practices will not only enhance India’s trade competitiveness but also pave the way for a resilient and green logistics ecosystem.”
