Union finance minister Nirmala Sitharaman will present the Budget for the financial year 2024-25 in the Lok Sabha on 23 July. Pre-budget expectations have started flowing in from various sectors of the Indian packaging industry.
According to Ashish Pradhan, president, Siegwerk Asia, the packaging industry in India is at a pivotal juncture, experiencing rapid growth and innovation. The robust growth of the packaging sector is supported by the rising demand for FMCG, eCommerce, and sustainable packaging solutions.
He says, “There is a pressing need for policies that support sustainable packaging solutions, infrastructure development, and technological advancements. We expect the upcoming Union Budget to address critical areas that include the simplification of GST and favorable tax policies, which help keep momentum in this sector high. These measures will not only enhance the industry’s global competitiveness but also drive environmental responsibility and economic growth.”
The flexible packaging industry has substantial export potential and is significant in supporting sectors like agriculture, food, and consumer goods. Pankaj Poddar, Group CEO, Cosmo First said, “India’s flexible packaging industry if supported by higher RoDTEP rate (including SEZ units) in upcoming Union Budget 2024 can substantially propel India’s exports. Infrastructure development for waste collection and R&D in recycling are crucial which can be attracted with incentives in the proposed budget. Incentives for innovation and R&D and an interest equalization scheme for exporters would boost our global competitiveness. These measures would significantly propel our industry’s growth, projected to reach $204.81 billion by 2025.”
Dhananjay Salunkhe, managing director at Huhtamaki India commenting on similar lines said, “As we look towards the upcoming budget, I see tremendous potential for policies that could drive growth and innovation in our sector. One of the most pressing challenges we face is the recyclability of flexible packaging. While current policies promoting Extended Producer Responsibility (EPR) and recycled content are steps in the right direction, we need a regulatory push for recyclability of mono-material solutions in flexible packaging.”
“Well-crafted legislation can be a powerful catalyst for change. By introducing incentives for sustainable practices, the government can help businesses align with global sustainability standards while benefiting the environment. This approach would not only support the packaging industry but also contribute to India’s broader environmental goals. The shift towards circularity would benefit businesses, consumers, and the nation,” he adds.
“With the government being sworn in for a straight third time, we expect a continuity of policy,” says Mihir V Shah, executive director, Vipul Organics. “We expect a renewed focus on infrastructure development, manufacturing, and job creation. India aspires to be an export hub with the stated target of exporting goods and services worth $2 trillion by 2030. This can be made possible by reducing the tariffs on imports of raw materials and ensuring that the right building blocks are in place, especially for the manufacturing sector. In addition, putting stringent anti-dumping measures will ensure that the domestic manufacturers have a level playing field.”
The packaging industry believes that the Budget will ensure the government’s commitment to the manufacturing sector as a whole. Shah feels chemicals sector in particular moves seamlessly. Today chemicals contribute around 7% to the GDP and India is the 6th largest producer of chemicals in the world. The chemicals sector is estimated to grow to $300 Billion by 2025 and $1 Trillion by 2040.
Shah adds, “We hope that the budget focuses on bringing PLI in the chemical & petrochemical sector to propel growth, for both existing and greenfield facilities. In addition, the development of quality infrastructure and chemical hubs with centralized waste and effluent treatment systems will bring India to par with the other manufacturing hubs. This will ensure that the sector continues to be an important participant in the India growth story.”
S. Sunil Kumar, country president of Henkel India said, “The manufacturing sector is a key driver to India’s economic growth, contributing to 16-18% of the country’s GDP. The Indian government has played a crucial role through strategic initiatives and policies, such as the ‘Make in India’ and PLI scheme, to enhance its competitiveness and productivity. To accelerate it further, strategic focus areas suggestions that can be beneficial — making raw materials available at scale locally, competitive tax structures, development of industrial corridors, and investments in research and development. Continued emphasis on improving the ease of doing business, streamlining regulations, and ensuring a stable policy environment will be crucial for attracting long-term investments in the industry.”
The adoption of Industry 4.0 in manufacturing and sustainable practices is also gaining momentum. Industry 4.0 technologies, such as IoT, AI, and blockchain, are anticipated to receive further support as they mature and add more value, improving operational and supply chain efficiencies. A regulatory and financial framework incentivizing sustainable practices will significantly boost sustainability across the value chain. Now that we have established a strong growth foundation and a good track record, a favorable budget will undoubtedly spur further growth momentum.
