CHEMEXCIL Director General Raghuveer Kini is confident in achieving the US$ 31 billion chemical export target for 2024-25 due to strong demand from markets like Brazil, the US, and Japan. The Basic Chemicals, Cosmetics and Dyes Export Promotion Council (CHEMEXCIL) is established by the commerce ministry for export promotion of these products. The exports of chemicals reported during the first half of the fiscal totalled US$ 14.1 billion and was 4.57 per cent higher than the previous year. Kini said that this year, the situation is good and expects high growth.
India exports goods worth about USD one billion annually to the South American nation. The council is holding awareness programs for exporters about the preparedness of the European Union’s carbon tax and quality control orders. The EU’s Carbon Border Adjustment Mechanism (CBAM) is an import tax that will be levied on imported goods in the European Union. It has now chosen to apply a carbon tax on seven sectors which are highly reliant on carbon, these include steel, cement, chemicals, and fertilisers.
Kini also pointed out that there has been an increased production of end-use industries such as pharmaceuticals, agricultural as well as manufacturing industries. Indian chemicals have therefore found a market in foreign countries because they meet standards such as REACH (Registration, Evaluation, Authorisation and Restriction of Chemicals) and other regulations.
He said that there are bottlenecks of poor infrastructure around important port locations of Nhava Sheva and Mundra affecting shipment of goods. Issues in payments and settlements under the rupee-ruble trade mechanism due to sanctions on designated banks like Sberbank are affecting trade with Russia. The suggestion is to increase the number of authorised banks in India and Russia to facilitate transactions.
