Indian government focus on water sector to boost pipe demand

The Indian government on 1 February 2021 announced the Budget 2021 that focuses on six pillars including health and well-being, physical and financial capital and infrastructure, inclusive development for aspirational India, reinvigorating human capital, innovation and R&D, and 'Minimum Government, Maximum Governance'. 

Despite a slew of hikes on the customs duty as part of the Made in India program, players said the polymers and chemicals sector see very little changes in import duties.

Meanwhile, the Indian government allocated INR 3.6 trillion ($49.3 billion) to expand the water supply and distribution infrastructure in the country to provide tap water connection to every household by 2024. 

The initiative is expected to boost demand for pipe visibly, which players are expecting positive spillover to the PVC and HDPE pipe sector.