Leaders from the packaging and allied industries have welcomed the income tax relief for the middle-class in the Union budget presented by finance minister Nirmala Sitharaman, which is expected to spur consumption, as well as the support for MSMEs and other key decisions such as setting up a food processing institute. At the same time, others feel additional incentives to support the industry’s move toward sustainability could have accelerated growth.
Jeevaraj Pillai, director – sustainability and president – flexible packaging and new product development, UFlex Limited, says this year’s budget introduces several initiatives aimed at driving economic growth.
“We appreciate the government’s focus on increasing disposable income through revised income tax slabs, which will inject more liquidity into the market. This move is expected to boost the consumption of FMCG, including packaged products, creating a ripple effect that benefits the packaging industry. Packaging, which is essential for preserving the quality and freshness of these goods, may see increased demand for innovative and sustainable solutions,” Pillai said.
Jeevaraj Pillai, director – sustainability and president – flexible packaging and new product development, UFlex Limited speaks on the budget 2025While the budget has taken several positive steps, additional support in key areas could have further accelerated industry growth, Pillai said.” For instance, tax incentives for eco-friendly materials, subsidies for advanced recycling units, and stronger incentives for meeting extended producer responsibility (EPR) targets would have significantly boosted the transition toward sustainability. Additionally, encouraging investments in recycling infrastructure through CSR provisions, interest subvention for loans, and increased funding for R&D in sustainable packaging could have provided a much-needed push for the sector,” Pillai said.
“As we move forward, we remain committed to collaborating with the government and industry stakeholders to drive innovation and sustainability in the packaging industry,” Pillai said.
Saurabh Agarwal, vice president & general manager at Avery Dennison, South Asia also welcomed the Union Budget 2025-26, which he says places a strong emphasis on sustainability, infrastructure development, and support for MSMEs, presenting exciting opportunities for the packaging and labeling industry. “At Avery Dennison India, we are deeply committed to driving innovations in sustainable packaging and reducing environmental impact.”
Furthermore, the reduction in tax slabs is expected to boost consumer spending, which will drive higher demand across consumption basket, including packaging and labeling, he said.
Saurabh Agarwal, vice president and general manager of Avery Dennison’s Materials Group, South Asia“Additionally, the government’s commitment to improving manufacturing infrastructure and enhancing the ease of doing business will help packaging companies, including small and medium enterprises, scale up their operations and innovate more efficiently. As a leader in material science, Avery Dennison India is poised to support India’s transition toward more responsible and sustainable packaging, in line with the global push for a circular economy. We are excited to be part of this movement as India looks to build a more sustainable future while maintaining its position as a competitive manufacturing hub.”
According to Manjusha Singh, CEO of Siegwerk India, the Union Budget 2025 presents a promising vision for India’s manufacturing sector, reinforcing the nation’s commitment to self-reliance through the National Manufacturing Mission.
Manjusha Singh, CEO of Siegwerk India“The government’s continued momentum towards food processing, with the establishment of a National Institute of Food Technology, Entrepreneurship and Management in Bihar, will promote efficiency and innovation in the sector. We perceive this development as an opportunity to contribute through cutting-edge, safe, and environmentally friendly packaging ink solutions for specific requirements of changing times in the FMCG sector. With an additional momentum towards India becoming a global toy hub, it is in tune with a larger purpose of localized development of manufacturing that opens an opportunity for packaging and product innovation.”
“Overall, these actions make India’s manufacturing ecosystem supportive of growth, innovation, and sustainability. Siegwerk continues to stand with the sector with its expertise, and packaging and printing solutions will resonate with India’s changing industrial scenario,” she said.
Vaibhav Anant, founder & CEO, Bambrew, a provider of sustainable packaging solutions, says the Union Budget 2025 has taken important strides in fostering sustainability-driven economic growth. “The expanded fund of funds for startups, with an additional ₹10,000 crore contribution, is a promising step towards supporting innovation in sustainable materials and packaging solutions. Access to such funding will be critical in accelerating the adoption of eco-friendly alternatives to plastic.”
The commitment to strengthening MSMEs, particularly through measures to tackle non-tariff barriers in exports, is also encouraging, he says, adding for startups, and particularly for the segment we operate in, this could unlock global market access, ensuring that greener alternatives from India reach scale and drive meaningful change.
Vaibhav Anant, founder & CEO, Bambrew“However, with packaging waste accounting for 59% of India’s plastic pollution, there remains a pressing need for targeted policies that incentivize businesses to transition away from single-use plastics. While broad-based industrial reforms have been announced, specific investments in R&D for sustainable materials, industrial composting infrastructure, and circular economy incentives could have provided stronger momentum for India’s green transition.”
While this year’s budget prioritized sustainability across all sectors; from a broader industry perspective, what’s crucial now is swift implementation and industry collaboration to ensure sustainability is not just an economic enabler but the core pillar of our growth strategy. At Bambrew, we remain committed to driving this change and look forward to working with policymakers and industry leaders to make sustainable packaging the norm, not the exception,” he said.
