Finance Minister Nirmala Sitharaman presented the Union Budget 2025 on 1 February 2025, unveiling a range of economic measures aimed at fostering growth, sustainability, and industrial innovation. Leaders from the packaging industry have shared their perspectives on how the budget impacts their businesses, highlighting both the opportunities and areas where further support could have been beneficial.
The Union Budget 2025 has been received positively by packaging industry leaders, with its emphasis on manufacturing, MSME support, and sustainability being widely appreciated. While the sector welcomes initiatives that boost consumer spending and industrial growth, experts agree that additional incentives for eco-friendly materials, recycling infrastructure, and R&D in sustainable packaging would have further accelerated the industry’s green transition. As the budget paves the way for a more resilient and competitive economy, the packaging sector remains committed to driving innovation and sustainability in India.
Boosting consumption and sustainability in packaging
Jeevaraj Pillai, director – sustainability, president – flexible packaging and new product development, UFlex, acknowledged the budget’s positive approach toward increasing disposable income through revised tax slabs. He believes this will drive higher consumption of FMCG products, leading to greater demand for packaging solutions.
“We appreciate the government’s focus on increasing disposable income, which will inject more liquidity into the market. This move is expected to boost the consumption of packaged products, creating a ripple effect that benefits the packaging industry. However, additional support in key areas such as tax incentives for eco-friendly materials, subsidies for recycling units, and stronger incentives for Extended Producer Responsibility (EPR) compliance would have further accelerated the sector’s transition toward sustainability,” Pillai said.
He also emphasized the need for greater investment in recycling infrastructure, interest subvention for loans, and increased R&D funding for sustainable packaging solutions.
Strengthening manufacturing and innovation
Manjusha Singh, CEO of Siegwerk India, highlighted how the budget reinforces India’s self-reliance and manufacturing capabilities through initiatives like the National Manufacturing Mission. She noted that the establishment of a National Institute of Food Technology in Bihar will enhance food processing efficiency, indirectly benefiting the packaging sector.
“We perceive this development as an opportunity to contribute through cutting-edge, safe, and environmentally friendly packaging ink solutions tailored to the evolving needs of the FMCG sector. The push towards India becoming a global manufacturing hub, including for the toy industry, also presents an opportunity for packaging innovation,” she said.
Opportunities for sustainable labeling and MSME growth
Saurabh Agarwal, vice president and general manager at Avery Dennison, South Asia, welcomed the budget’s emphasis on sustainability, infrastructure development, and MSME support. He pointed out that reduced tax slabs would drive consumer spending, increasing demand for packaging and labeling solutions.
“The government’s commitment to improving manufacturing infrastructure and enhancing the ease of doing business will help packaging companies, including MSMEs, scale up their operations and innovate more efficiently. Avery Dennison India is poised to support India’s transition toward responsible and sustainable packaging, aligning with global circular economy goals,” Agarwal said.
Empowering food processing and local supply chains
Sanjana desai, executive director of mother’s recipe, praised the budget’s focus on msme support, export growth, and agricultural innovation. She believes that expanding credit facilities for micro and small enterprises will empower businesses to scale globally while strengthening India’s position as a key food supplier.
“With an increased focus on agri-processing and improved access to credit, this budget reinforces the government’s commitment to creating a robust ecosystem where brands rooted in authenticity, like Mother’s Recipe, can continue to deliver high-quality products while supporting Indian farmers and strengthening local supply chains,” she said.
Startups and sustainable packaging innovations
Vaibhav Anant, founder & CEO of Bambrew, appreciated the budget’s INR 10,000 crore addition to the Fund of Funds for startups, which he believes will accelerate innovation in sustainable materials and packaging. However, he stressed that more targeted policies are needed to tackle packaging waste and incentivize the transition away from single-use plastics.
“While this year’s budget prioritizes sustainability across sectors, swift implementation and industry collaboration are crucial to ensure sustainability becomes the core pillar of growth. At Bambrew, we remain committed to making sustainable packaging the norm, not the exception,” Anant said.
A competitive outlook for indian packaging manufacturers
Neeraj Jain, Group CFO of Cosmo First, noted that the budget’s tax reforms and support for MSMEs would boost consumer spending and enhance export competitiveness. He sees the budget as a step toward making India a manufacturing and export-led economy.
“With over 45% of exports coming from MSMEs, the new export promotion mission will aid their competitiveness in both domestic and global markets. This aligns with the industry’s projected growth trajectory towards a USD 36.29 billion market size by 2032. The budget enables domestic packaging manufacturers to better compete internationally and strengthens the ‘Make in India’ vision,” Jain said.
