In a meeting with reporters in Mumbai in the last week of December 2107, the Plastics Export Promotion Council (Plexconcil) expressed confidence that India’s plastics exports will cross the US$ 8 billion mark in the current financial year. “The current trend in India’s plastic exports seems highly encouraging and we are confident of plastics exports crossing US$ 8 billion in the current financial year (2017-18) with a 6% increase over the US$ 7.56 billion figure of FY 2016-17. Indian plastic exports to the United States, which is the largest destination, continues to trend higher and is nearing the coveted US$ 1 billion mark,” said Plexconcil chairman Pradip Thakkar.
During the first half of FY17-18, the cumulative value of India’s plastics exports witnessed a positive growth of around 9.5% amounting to US$ 3.49 billion over the US$ 3.19 billion exports achieved in the corresponding period of the previous financial year. Thakkar added, “We are working with the government on a strategy to increase the country’s plastic exports as the global export market for plastics of US$ 800 billion presents a huge opportunity.”
The Indian plastics industry offers great potential in terms of capacity, infrastructure and skilled manpower, and the country ranks among the top five consumers of polymers globally. The industry is dominated by the MSME sector and particularly by SSIs with more than 30,000 plastic processing units employing over 4 million people. Although the industry is experiencing double-digit growth, the smaller companies, according to the Council, require support from the government’s Technology Upgradation Fund Scheme to replace obsolete machinery. Adoption of newer technologies is key to increasing the country’s share in the global plastic exports.
The Plexconcil has apprised the government of issues pertaining to the GST implementation, requesting remedial action for fast-tracking of IGST refunds and exemption of merchant exporters from GST on procurement against bond. It has also asked for a clear procedure for third-party exports under the GST regime.