Plastics Export Promotion Council unveils 5-year plan to target USD 25 bn of plastics exports by 2025
The Plastics Export Promotion Council of India (PLEXCONCIL), the apex trade body for plastics exports sponsored by the Union Ministry of Commerce & Industry, Government of India, has unveiled plans to target plastics’ exports of USD 25 billion by calendar year 2025 – while posting 20% growth in plastics exports during FY21 and FY22.
Backed by strong government support-planned investment of USD 6.2 mn and 18 plastic parks being set up to boost domestic production, employment and achieve environmentally sustainable growth. PLEXCONCIL has mapped out 50 value-added plastic products in which India has a good standing and can easily expand its presence to other geographies. PLEXCONCIL identified products for Atmanirbhar Bharat are: PVC Films; Petrochemicals – Styrene Monomer, Maleic Anhydride, Propylene Glycol Titanium Dioxide; Plastic films Nylon High Tenacity UV Yarn. PLEXCONCIL is in the process of identifying the champion sectors.
PLEXCONCIL has been organising virtual Interactive Sessions, Seminars, etc., with the manufacturers / exporters / related associations & organisations along with the State Governments to create awareness and to provide necessary assistance to exporters/manufacturers. The PLEXCONCIL mobile app has been unveiled for plastic exporter members and trade fraternity.
Mr. Ravish Kamath, Chairman, PLEXCONCIL, said, “India is well positioned as a key plastic manufacturing base for corporations relying on global value chains in a dynamically evolving world trade scenario. Recent policy announcements during the lockdown and unlock phases underscore Indian Government’s focus on domestic manufacturing and opening up of new opportunities. India has undertaken several business-friendly reforms in recent years to enhance ease of doing business. Various alternatives for leveraging India as a part of the supply chain are available — 100% owned Manufacturing; Manufacturing through JVs; and Contract Manufacturing. India needs to boost domestic production of polymers, so much so that surplus quantity is available within the country thereby making availability of polymers at competitive rates.”
Talking about further support needed from Government, Mr. Kamath adds, “Plastic exporters have to be given the option to continue with MEIS or with RoDTEP and the RoDTEP rates should be fixed liberally to help them complete internationally. PLEXCONCIL has been requesting Govt to appoint a Shipping Regulator body since a long time. Free Trade Agreements need to be Renegotiated for Plastic goods especially with major export destinations such as Europe (which accounts for 24% of India’s plastics exports), North America (16%) and WANA region (14%) amongst others.”
Mr. Arvind Goenka, Vice Chairman, PLEXCONCIL, added, “PLEXCONCIL is in the advanced stages of holding a B2B meeting with buyers based in the leading international markets such as the US, Egypt, Japan, Korea and Vietnam. Our plan is to have at least 10 virtual B2B meetings with overseas buyers by December 2020. PLEXCONCIL has also written to Indian embassies and High Commissions. The PLEXCONCIL has approached three organisations to help build an export strategy for plastics with an objective to increase exports namely IIFT, New Delhi, IIM Ahmedabad and EXIM Bank of India.”
PLEXCONCIL is targeting higher exports to Australia, Brazil, China, Germany, Indonesia, Israel, Italy, Kenya, Malaysia, Netherlands, Nigeria, Saudi Arabia, Singapore, South Africa, Spain, Sri Lanka, Thailand and Turkey with details of potential products.
Mr. Sribash Dasmohapatra, ED, PLEXCONCIL, said, “During the first half of 2020-21, India exported plastics worth USD 4.77 billion witnessed a fast recovery post lockdown and recorded a positive growth of 7.9% in September 2020. During the first half of 2020-21, certain product panels like Raw materials; Polyester films; and Human hair witnessed a positive growth in exports. We are hoping that the remaining panels, particularly, Consumer & house ware; Writing instruments; Woven sacks / FIBCs; Floor coverings, leather cloth & laminates; will pick up in the second half of FY21.”
India has 2,000+ exporters across the country – 15 large industrial groups in polymer manufacturing, 30,000 plastic processors, 7,500 units in recycling, Packaging, infrastructure, industrial sectors agriculture, textile fibers, electronics and automotive amongst others. PLEXCONCIL Members suggested that the Government should reduce the lead time for refunds (MEIS / GST) for exporters and also reinstate GSP. They have also sought availability of containers in order to avoid expiry of LC’s and breaching of delivery schedules. As India is import dependent on polymers, import shipments are not getting loaded at ports in Europe, USA & NEA for India leading to an unprecedented hike in polymer prices -specially for PVC Resin wherein India produces only 45% of its mammoth consumption of more than 3 MTPA.