New Delhi, February 2025 – The Union Budget 2025-26 has introduced key measures that will reduce costs, boost exports and encourage innovation in the paints and coatings industry. With customs duty rationalization, increased export support and a growing infrastructure push, businesses in this sector are set for a strong year ahead.
🛢️ 1️⃣ Lower Raw Material Costs
• Customs duty rationalization for industrial goods, making imports of key raw materials like titanium dioxide, pigments and specialty resins cheaper.
• One cess or surcharge policy, ensuring a more stable tax structure for manufacturers.
• Duty-free inputs for industries, benefiting paints and coatings reliant on high-quality imported chemicals.
💡 How it helps: Lower input costs = Better profit margins!
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🌍 2️⃣ Exporters Get a Boost
• BharatTradeNet, a new digital platform for seamless trade documentation & export financing.
• Export Promotion Mission to simplifyand credit access for businesses selling paints, coatings and chemicals globally.
• Rebate on State & Central Taxes & Levies (RoSCTL) increased to support paint exports.
💡 What this means: If you’re exporting paints or coatings, you now get better financing, faster paperwork and cost reductions!
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🏗️ 3️⃣ Construction & Infrastructure Growth = More Demand for Paints
• ₹1.5 lakh crore interest-free loan for states, leading to new urban development projects.
• Extension of Jal Jeevan Mission till 2028, driving demand for protective coatings & corrosion-resistant paints.
• ₹25,000 crore Maritime Development Fund, boosting shipbuilding & industrial coatings.
💡 Why it matters: More buildings, infrastructure and ships = Higher demand for paints & coatings!
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🍃 4️⃣ Green & Sustainable Paints Get a Push
• Tax benefits for R&D in eco-friendly & low-VOC paints.
• Incentives for sustainable manufacturing, making it more affordable to invest in green paints & coatings.
• PLI schemes extended, supporting innovations in energy-efficient coatings.
💡 Next step: If your business is moving towards sustainable coatings, now is the best time to invest in R&D!
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🚀 The Verdict: A Strong Year for Paints & Coatings!
With lower raw material costs, easier exports and rising infrastructure demand, paint and coating manufacturers are well-positioned for growth in 2025.
✔ Optimize sourcing – Take advantage of custom duty reductions.
✔ Expand exports – Use BharatTradeNet & export incentives to scale globally.
✔ Invest in green paints – Leverage new tax incentives & R&D support.
This budget paints a bright future for the industry!
(Report – Industrial Front Business Desk)