Mihir V Shah: India is well placed to deepen its role in international supply chains

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.

This view is presented by Mihir V Shah, Executive Director, Vipul Organics