Plastics are among the fastest growing industries in India and offers immense potential in terms of capacity, infrastructure and skilled manpower. Ever since its inception in 1957, the plastic industry in India has made significant achievements. Currently, India is ranked among the top five global consumers of polymers and has over 30,000 plastic processing units employing more than 4 million people across the country. The growth rate of the Indian plastics industry is one of the highest in the world, with plastics consumption growing at 16% per annum.
India’s plastics industry is now targeting at least a 3% share of the global polymer export market by 2025. A combination of capacity expansion and technology upgrades are playing a huge part behind making this possible. The target represents a tripling of the current share of 1% of the global market, which is currently estimated at more than $850bn, according to Ashok Basak, chairman of India’s plastics export promotion council.
Furthermore, the Indian plastics industry is expected to grow at an annual rate of 8-10%, with domestic polymer consumption expected to double by 2028. Because of this, the government is pushing for plastic industries to expand production capacity to meet domestic demand, as well as increase India’s exports. “For 2017-18, we have set ourselves an export target of $8.31bn, with India’s plastics exports to the US is expected to cross $1bn,” Basak added.
India exports both plastic raw materials and finished products to over 200 countries across the globe, according to the group. India’s plastics exports for April-December 2017 stood at $5.46bn, up 14.4% year on year. This is due to increased exports to the US, Europe and to emerging markets in Latin America, Africa, and ASEAN countries, according to data from the Plastics Exports Promotion Council. The government has announced that it would reduce corporate tax to 25% for businesses with a turnover of up to Rs 2.5 billion. This will help plastics manufacturers utilize the funds and direct it towards improving their manufacturing capacities and technology upgrades.