Incentives must to get speciality chemicals supply chains to India: PwC-Assocham report

New Delhi: The Centre should implement safeguard duties and provide incentives to attract speciality chemicals supply chains to India, said a PwC-Assocham report. While the domestic industry is poised for significant growth, the sector faces numerous challenges pertaining to increasing commoditisation, which impacts profit margins, it said.

According to the report titled 'Indian chemical industry: Enablers to make India a growth hub for chemicals', released this month, the reciprocal tariffs by the US have introduced new complexities, impacting cost structures and global competitiveness of Indian chemical exports. "These tariffs may create a ripple effect, exacerbating supply chain disruptions and increasing input costs," it said.

India should focus on becoming cost-competitive in trade by optimising supply chains and leveraging export subsidies. "Advanced technologies can also help in improving export performance and quality of products," the report said.