The Centre is considering the production-linked incentives (PLI) scheme for the chemicals and petrochemicals sector, Finance Minister Nirmala Sitharaman said on Thursday, July 27.
She was speaking Federation of Indian Chambers of Commerce & Industry's (FICCI) Global Chemicals and Petrochemicals Manufacturing Hub (GCPMH) 2023.
The finance minister said the potential and size of the chemicals and petrochemicals industry makes a big impact on the economy. She urged the sector to adopt industry 4.0 in a "big way" and also addressed how controlling pollution still remains a challenge. "We will also consider the Production Linked Incentive (PLI) scheme for chemicals and petrochemical sector," she said.
Sitharaman aid the sector has an impact on other sectors as well such as agriculture, textile, infrastructure, among others. She said it needs to adopt industry 4.0 in a big way, adding that the government has not regulated this industry except for hazardous chemicals. She said the speciality chemical market represents 32 percent of the overall chemical sector.
The Finance Minister also stressed on focusing on production in India. She said the export values from the industry have increased by 2 percent from last year, but imports are also increasing. "Many of these imports can be produced in India as well," she said.
Another challenge was pollution control. "India has set its sight on becoming net zero by 2030 and for that the carbon intensity has to be reduced," she said.
Sitharaman said the chemicals and petrochemicals industry needs to keep India's green initiatives and commitments in sight and contribute to the same. She said global firms are looking to tie up with Indian companies. "I would urge the industry to focus on sustainability and India's national commitment towards the environment," the finance minister added.
