Vapi, Gujarat’s bustling industrial powerhouse, is holding its breath as the upcoming Union Budget looms large on the horizon. With over 10,000 small and large enterprises thriving in chemicals, pharmaceuticals, paper, and engineering sectors, the region eyes fiscal measures that could alleviate pressures from global trade disruptions.
Exporters in Vapi, who rake in millions in foreign exchange, are grappling with the fallout from Trump-era tariffs. These levies have cast a shadow of uncertainty over operations, squeezing margins and stalling growth. Industry leaders are optimistic that the budget will introduce targeted incentives to boost exports and fortify MSMEs against international headwinds.
Satish Patel, President of Vapi Industrial Association, emphasized the predominance of MSMEs in the area. ‘We expect concrete steps to counter tariff impacts and align with visions of Viksit Bharat by 2047 and Atmanirbhar Bharat,’ he stated. A industry-friendly budget could provide the much-needed impetus for small and medium enterprises to scale up.
In the pharma and chemical hubs, calls for reinstating 200% R&D expenditure rebates are growing louder. Prakash Bhadra, a prominent industrialist, highlighted how the withdrawal of this incentive over the past two years has hampered innovation. ‘Restoring it would spur new product development and keep us competitive,’ he added, urging incentives for AI investments amid challenges from tariffs and Chinese competition.
Vapi’s pharma sector, a key contributor to India’s global leadership, seeks policy tweaks for self-reliance. Proposals include a dedicated Department of Pharmaceuticals to enhance export representation and streamline GST refunds. Kamal Vashi noted, ‘Simplifying export-import policies with one-window systems would unlock tremendous potential.’
As the government balances global ambitions with domestic growth, Vapi’s industries await measures that promise not just survival, but sustained prosperity in a volatile world economy.