Key amendments proposed in Finance Bill 2023 in respect of chemical sector

In the face of various global challenges, the Indian chemical industry continued to be resilient in 2022 and has shifted gears in the right direction of becoming a noteworthy global player.  The Indian Chemical industry continues to be a significant contributor to India’s “Make in India” or Atmanirbhar Bharat Abhiyaan reform.  Accordingly, it was expected that Budget 2023 would provide further impetus to the Indian chemical sector which has witnessed record growth in exports and capacity expansion in the last 2 to 3 years.

Budget 2023 is a growth oriented, progressive and prudent budget with specific focus on stability, sustainable and inclusive development, announcing various policies which will generate demand for a variety of chemicals including construction chemicals, emission control catalyst, polyurethanes, TPUs, bio-pesticides, etc.  Further changes in BCD rates of various goods like crude glycerin, denatured ethyl alcohol, acid grade fluorspar, specified chemicals for manufacture of pre-calcined Ferrite Powder, etc would provide impetus to increase domestic demand for these products/ Make in India policy. However, the Indian chemical sector, which has all the ingredients to become a global manufacturing hub, continues to await the much expected and anticipated production linked incentive scheme, which has unfortunately not been announced in Budget 2023.