Abhimanyu Roy, Executive Director, Avalon Consulting, “The most critical requirement is to improve India’s export competitiveness in chemicals, especially in light of Trump tariffs. Fixing anomalies (e.g. inverted duty structure in certain value chains), reducing import duties in certain key raw materials, extending ITC refund scope to capital goods and input services for product and services exporters (e.g. CDMOs), will be important, along with specific allocation of funds to help MSMEs tap new export markets.
Secondly, the Indian Chemicals sector (and related areas like Pharma and Agchem) needs government support to drive innovation and increase its R&D spend from the current levels of <2% of GDP. Bringing back / strengthening the weighted tax deduction for R&D, promoting CSR-linked research allowances, and a stronger patent framework will help in this regard. Expand the PLI scheme beyond bulk drugs / APIs to other critical chemical value chains (both speciality and bulk chemicals) where lack of competitiveness in the intermediate / KSM makes the industry dependent on Chinese imports. A massive thrust is required for the chemicals industry to decarbonise through Green Energy-driven Chemical Hubs. This can be supported through viability gap funding for Green Hydrogen usage in Fertilisers / Ammonia etc. Higher subsidy support for CBG projects will also be an important step in this direction”.
Dr. Sangeeta Srivastava, Executive Director, Godavari Biorefineries Ltd., “Having successfully achieved E20 blending ahead of schedule, India now faces a productive surplus that requires urgent demand-side policy innovation.
Budget 2026 should focus on incentivising E100-ready infrastructure and accelerating the mandate for Sustainable Aviation Fuel (SAF) to absorb this additional ethanol capacity. It will lead to a strategic shift toward ethanol-to-chemicals and high-value bio-based derivatives, which is essential. This budget must provide the fiscal framework to transition from fuel blending to a global leadership role in the Sustainable Chemical economy”.
Akanksha Tyagi, Programme Lead, Council on Energy, Environment and Water (CEEW), “The risingmaterial demand amid geopolitical challenges makes a Circular Economy a strategic imperative for our national security and sustained economic growth. CEEW research finds that circularity in seven sectorsalone offers an INR 11.5 lakh crore (USD 132.2 billion) worth of annual market by 2047, will help create 8.4 million full-time equivalent (FTE) jobs and attract INR 10.8 lakh crore (USD 124.8 billion) in investments. The budget should announce a National Mission on Circular Economy to drive concerted efforts into the sector and realise this opportunity.”
Anurag Choudhary, CMD and CEO, Himadri Speciality Chemical Ltd., “As India accelerates its renewable energy transition, energy reliability and security must move to the centre of the policy agenda. Addressing the intermittency of renewable power will require a strong and sustained emphasis on Battery Energy Storage Systems (BESS), complemented by the diversification of the renewable energy mix beyond solar energy through increased support for wind, tidal, and other new-age alternatives to enhance overall energy security.
At the same time, increasing geopolitical tensions have intensified global competition for critical minerals, making access to resources such as lithium, cobalt, nickel, and rare earth elements central to future progress. With global supply chains highly concentrated and China holding the lion’s share of processing and refining capacity, it is imperative for India to ensure a stable domestic supply and greater control over the exploration, processing, refining, and recycling of these materials.
Focused policy support and targeted investments will be required to reduce import dependency and strengthen supply-chain resilience. Long-term availability and stability can be achieved only through advanced technology-led alternatives, localisation, and strategic partnerships. I expect Budget 2026 to be proactive, building upon previous allocations and strengthening support across these areas to enable a self-reliant, competitive, and sustainable clean energy ecosystem in line with the vision of Atmanirbhar Bharat.”
Mihir V Shah, Executive Director, Vipul Organics Limited, “The consistent policy support extended to manufacturing in recent years has created strong tailwinds for India’s chemical industry, including the dyes and pigments segment. As global customers increasingly seek diversified and dependable sourcing destinations, India is well placed to deepen its role in international supply chains. The Union Budget can build on this positive momentum through continued investments in chemical park infrastructure, faster environmental approvals, and improved logistics for efficient movement of goods within the country and for exports.
Given the capital-intensive nature of this industry, access to long-term, competitively priced capital remains essential for ongoing investments in technology, safety, and advanced pollution control systems. Encouraging domestic production of key intermediates will further reduce import dependence and enhance value addition within India. Continued policy encouragement for R&D, process innovation, and green chemistry will help manufacturers offer higher-value, customised solutions aligned with evolving global compliance and sustainability expectations.
Stable regulations, simplified compliance processes, and timely GST refunds will meaningfully ease working capital cycles and strengthen investor confidence. With such supportive measures, the chemical sector can expand exports, create skilled employment, and reinforce India’s position as a reliable and responsible global manufacturing partner”.
Rajiv Gandhi, Founder, MD and CEO, Hester Biosciences Ltd and President AMA, “In stable economies, annual budgets do not witness wide variations. The changes are largely aimed at refining ongoing reforms and maintaining continuity in policy direction. So is the case with India.
From the upcoming Budget, I would particularly like to see enhanced public expenditure towards agriculture, animal husbandry and infrastructure creation. Strengthening the primary sector can provide a strong foundation for agricultural and; industrial growth, leading to a boost to MSMEs. This, in turn, would generate employment, raise disposable incomes, stimulate consumption and ultimately strengthen domestic demand, creating a cycle of sustainable economic growth”.
Gokul Jaykrishna, Chairman, FICCI – Gujarat and Joint MD and CEO, Asahi Songwon Colors Ltd, “We’ve travelled far from the suffocating licence raj, under Prime Minister Modi’s decisive push, growth roared back, catapulting us amongst world’s top 4 economies.
The Indian engine is now humming at 7%. Yet settling at 5 trillion dollars feels modest. True parity with giants demands vaulting to ten trillion, fast. India needs two things, Scale and Risk Capital, to build an ecosystem that ignites animal spirits. PM gave the runway; now tax breaks and capex fuel must ignite takeoff, turning potential into powerhouse scale to realize India’s true potential.
Key tasks:
• Increase infra capex, link it to mega corridors.
- Widen PLI schemes for electronics, drones, EVs.
• Cut long-term gains tax, smooth FDI windows to compete with US and China, and
attract more risk capital.
