Packaging industry reacts positively to a growth-oriented budget
The finance minister presented the full budget for the financial year 2024-25 on 23 July. Anthony D’souza of Mespack and Chandrasekhar Rajagopalan of IFCA with the hope for a packaging-friendly potential policy that could drive growth and innovation in the sector, respond to the Budget.
06 Aug 2024 | By Abhay Avadhani
Anthony D’souza, managing director, Mespack; and Chandrasekhar Rajagopalan, president of IFCA
Anthony D’souza, managing director, Mespack, said, “The Union Budget for 2024-25, emphasised strengthening the manufacturing sector. The focus on infrastructure development and logistics improvements aligns with the supply chain needs.”
He said that the announcement of a credit guarantee scheme to ease access to loans for machinery and equipment purchases could be helpful for small and medium-sized packaging businesses. “Lastly, export promotion measures offer exciting opportunities for companies to expand their presence in international markets,” he highlighted.
Chandrasekhar Rajagopalan, president of the Indian Flexible Packaging & Folding Cartons Manufacturer Association (IFCA), said, “The budget pushes for job creation. This in turn will lead to increased consumption.” He believes that the packaging industry can get some momentum due to increased consumption.
Talking about GST, Rajagopalan said, “Changes are not within preview of Union Budgets. There is specific mention of any policy changes on environmental guidelines. As regards ease of doing business, we need to wait and watch for further government action in coming months.” He urges the industry to keep a watch on rural demand.
D’souza further said, “The budget introduces a new return to amend outward supply details, making compliance more efficient. The regularisation of past demands due to industry practices or interpretational issues further enhances ease of doing business.”
He believes overall, the budget seems to have a broader focus on economic growth and MSME support, which could indirectly benefit the packaging industry.
“Focus on aligning packaging solutions with the budget's emphasis on manufacturing and infrastructure. Explore innovation and eco-friendly options. Leverage government schemes like credit guarantees for MSMEs to enhance competitiveness. Stay informed about industry trends and advocate for policies that benefit the packaging sector. Ultimately, a proactive approach can position your business to thrive in the evolving economic landscape,” D’souza added.