Indian Economy News

India's Plastics Export Promotion Council unveils 5-year plan to target US$ 25 billion of plastics exports by 2025

  • IBEF
  • November 2, 2020

The Plastics Export Promotion Council of India (PLEXCONCIL), the apex plastics export trade body funded by the Government of India's Union Ministry of Commerce & Industry, has unveiled plans to target US$ 25 billion in plastics exports by the calendar year 2025, while posting a 20% rise in plastics exports between FY21 and FY22.

Supported by strong government funding, US$ 6.2 million and 18 plastic parks are expected to be set up to improve domestic development, jobs and achieve environmentally friendly growth. PLEXCONCIL has mapped out 50 value-added plastic products that are well-established in India and can easily extend their presence to other regions. Products for Atmanirbhar Bharat found by PLEXCONCIL are PVC Films; Petrochemicals-Styrene Monomer, Maleic Anhydride, Propylene Glycol Titanium Dioxide; Nylon High Tenacity UV Yarn Plastic Films. PLEXCONCIL is in the process of identifying industries that are the champions.

To raise awareness and provide the requisite assistance to exporters / manufacturers, PLEXCONCIL has organised virtual interactive sessions, workshops, etc., with manufacturers / exporters / related associations & organisations along with the State Governments. For plastic exporters and trade fraternity members, the PLEXCONCIL mobile app has been launched.

"India is well positioned as a main plastic manufacturing base for companies dependent on global value chains in a rapidly changing world trade scenario," said Mr. Ravish Kamath, Chairman, PLEXCONCIL. In the lockdown and unlock phases, recent policy announcements underscore the focus of the Indian Government on domestic output and the opening of new opportunities. In recent years, India has undertaken many business-friendly reforms to improve the ease of doing business. There are numerous alternatives available for leveraging India as part of the supply chain — 100 % owned manufacturing; manufacturing by JVs; and contract production. India needs to improve domestic polymer production to such an extent that surplus quantities are available within the country, thus making polymers available at competitive rates.

Mr. Kamath adds, "The choice to proceed with MEIS or RoDTEP must be provided to plastic exporters and the RoDTEP prices should be freely set to assist them in completing them internationally. PLEXCONCIL has long been pursuing the appointment of a Shipping Regulator body by Govt. Free trade agreements for plastic products need to be renegotiated, in particular with major export destinations such as Europe (which accounts for 24% of India's plastic exports), North America (16%) and the WANA zone (14%).

Mr. Arvind Goenka, PLEXCONCIL Vice Chairman, said, "PLEXCONCIL is in the advanced stages of conducting a B2B meeting with customers in leading international markets such as the US, Egypt, Japan, Korea and Vietnam." By December 2020, our goal is to have at least 10 virtual B2B meetings with overseas buyers. PLEXCONCIL has also written to the High Commissions and Indian embassies. The PLEXCONCIL approached three organisations to help establish a plastics export strategy with an aim to boost exports in IIFT, New Delhi, IIM Ahmedabad and EXIM Bank of India.”

PLEXCONCIL targets higher exports with information of potential goods to Australia, Brazil, China, Germany, Indonesia, Israel, Italy, Kenya, Malaysia, Netherlands, Nigeria, Saudi Arabia, Singapore, South Africa, Spain, Sri Lanka, Thailand, and Turkey.

Mr. Sribash Dasmohapatra, ED, PLEXCONCIL, said, "India exported plastics worth US$ 4.77 billion in the first half of 2020-21, witnessed a rapid recovery post lockdown and posted a positive growth of 7.9% in September 2020." Some commodity panels, such as raw materials, polyester films, and human hair, experienced a growth in exports in the first half of 2020-21. We hope that the remaining panels will pick up in the second half of FY21, particularly consumer & house ware; writing tools; woven sacks / FIBCs; floor coverings, leather cloth & laminates.

India has over 2,000 exporters nationally-15 major polymer processing industries, 30,000 plastic processors, 7,500 recycling units, packaging, infrastructure, agriculture, textile fibres, electronics and automotive industries, among others. PLEXCONCIL Representatives indicated that the Government should shorten exporters' lead time for refunds (MEIS / GST) and reinstate GSP as well. To prevent the expiry of LC's and violation of distribution schedules, they have also pursued the availability of containers. As India is polymer-dependent imports, import shipments are not loaded at ports in Europe , USA & NEA for India, resulting in an unprecedented increase in polymer prices , especially for PVC Resin, where India produces only 45% of its mammoth consumption of more than 3 MTPA.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.

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