Plagued by stagflation, the chemical industry hopes that the new government to put the economy back on growth path by fast-tracking policy initiatives
The country is gearing up for next general election, with the last working day of the 15th Lok Sabha coming to an end on February 21, 2014. The economic growth has been going down in last two years, with experts holding the Central government’s policies (or lack of it) responsible for the poor show along with external factors. Though Finance Minister, P Chidambaram announced some measures to revive investment and boost consumption in his interim Budget2014, industry feels this may be too late, too little.
“With growth decelerating and no major investment on the horizon, earlier estimates of the chemical industry growth of 11% and an estimated $224 billion size by 2017, appear difficult. While we understand that the Finance Minister was presenting a Vote on Account, we had hoped that the government would tweak a few tax rates, bring about rationalisation in corporate tax, or simplify cess or duty structure,” said Vipul Shah, President, CEO & Chairman, Dow Chemical International Pvt Ltd and APAC Regional Director, Functional Materials.