Budget 2025: The budget disappointed the chemical sector. When Union Finance Minister Nirmala Sitharaman did not announce any in the budget for the next financial year 2025-26, most chemical companies fell from the rampage. Tata Chemicals, Epigral, Balaji AMINES, Gujarat Fluorochemicals, Premier Explosives, PI Industries, PI Industries Imadri specialty chemicals) The stocks broke up to 4 per cent.
What is the demand for chemical sector?
For the past few years, industry experts have been continuously demanding a production-linked incentive (PLI) scheme for the chemical sector. This time too, there were high expectations from the budget that the Finance Minister can announce it in the budget. Apart from this, Axis Securities estimated that in the budget, a chemical manufacturing hub like Gujarat could be announced by tax incentive which would benefit Indian chemical companies but no such announcement was made.
How is the status of Chemical Sector?
By the year 2022, the chemical sector progressed rapidly. However, again the worldwide demand and imports from China at cheap prices increased the difficulties of this sector. However, there are now some initial indications of recovery and in this financial year, the demand is expected to come on the track completely. Due to this, experts were also expecting that the government would support it through the PLI scheme so that the health improvement and the health of the sector would improve.
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