Page 9 - Plastics News February 2022

FRoM THE EDIToR'S PEN

It’s the Growth Oriented Budget

Earlier this month Finance Minister Nirmala Sitharaman presented the Union Budget and I am sure
most of you will agree with me that “It is a growth oriented budget. The focus of the Union Budget
is on providing basic amenities to the poor, middle class and youth, Prime Minister Narendra Modi
asserted that it is imperative that India becomes self-reliant. The capital expenditure of Rs 7.5 lakh
crore for the financial year 2022-23 from the level of Rs 5.5 lakh crore for the financial year 2021-
22 will certainly boost investment in the market. Also with the thrust on infrastructure / Housing
the Plastics Industry is all set for growth as in the modern day Plastics has wider applications across
the spectrum.
As the Finance Minister Nirmala Sitharaman proposed allocating Rs 60,000 crore to the drinking
water project- ‘Jal se Nal Yojna’, this will definitely benefit the (Plastics) pipe manufacturers and
allied sectors as well. This will also indirectly help Plastics consumption for the simple reason , of
storing adequate water and one might see increase in demand of end user items like bucket, mugs
and tanks etc.

In the Union Budget 2022, the finance minister announced a cut in import duty on methyl alcohol
from 5 percent to 2.5 percent and acetic acid from 7.5 percent to 5 percent. But, the import duty
on sodium cyanide was raised from 7.5 percent to 10 percent.Duty reduction on key feedstocks like
acetic acid and methanol is likely to boost the profitability of manufacturers dependent on imports,
however it is a negative for domestic manufacturers of these products. Further, several exemptions
are proposed to be gradually phased out and a graded duty structure is likely to be followed.
This will encourage intermediate product manufacturing for several sectors including chemicals
and thus is likely to be favourable for the domestic chemical sector.” For boosting exports from
India, the finance minister proposed to replace the existing Special Economic Zone (SEZ) Act with
a new legislation that will enable development of enterprise hubs. This will cover all large existing
groups, industry enclaves to enhance competitiveness of exports. AIPMA is already pursuing its
Plastics Parks and have been quite successful.
Apart for this with the Emergency Credit Line Guarantee Scheme (ECLGS) to be extended to
cover the next fiscal as well, this will also help MSME and Start ups.

And now with the COVID receding gradually (as some experts’ say it’s an ‘Endemic’) in the country,
let’s hope the industry is all set and able to make the most of it for betterment.

Rajiv B.Tolat
Hon. Editor
publication@aipma.net

8 PLASTICS NEWS FEBRUARY 2022 9 PLASTICS NEWS FEBRUARY 2022