India’s plastics exports will increase by 30 percent this year due to renewed demand from overseas
India’s plastics exports are expected to grow 30 percent in the current fiscal year as global demand to reopen markets is welcomed after nearly two years of pandemic disruption from the coronavirus (Covid).
In the first five months of the current fiscal year, India’s plastics exports recorded constant monthly growth of around 30 percent with a cumulative growth of an incredible 43.9 percent between April and August of this year. The leading association of industry, the Plastics Export Promotion Council (Plexconcil), recorded India’s cumulative plastics exports of $ 5.63 billion for the period between April and August 2021, compared with $ 3.91 billion for the corresponding period of Previous year.
Dizzying export growth will lead to a proportional increase in value added and ultimately to the creation of jobs. This means that the growth in exports will bring prosperity to Indian plastics manufacturers. Both government and industry have emphasized the need to add value and ultimately prosperity in India.
“It is encouraging to see that all product panels showed strong positive growth in August. We are confident that the industry will be able to maintain the growth momentum in the months to come. Given the good pace, we will probably achieve our export growth target of 30 percent in the current fiscal year, ”said Arvind Goenka, Chairman of Plexconcil, to Polymerupdate.
In August 2021, India’s plastics exports rose 26.1 percent to $ 1.06 billion from $ 0.84 billion ($ 838 million to be precise) in the same month last year.
The plastics processing companies in India employ a cumulative 4 million people. Between 85-90 percent of these plastics processing companies belong to the category of small and medium-sized enterprises (SMEs) due to their low economies of scale and limited turnover.
Despite the lockdown of several markets worldwide due to the Covid pandemic, India’s plastic exports for fiscal 2020-21 saw a slight decrease of 9.5 million tons from $ 10 billion in the previous fiscal year. However, for the current fiscal year 2021-22, India’s plastics exports are expected to exceed the target of $ 12 billion.
“We are facing a working capital shortage. As many incentives have been delayed, the availability of working capital has continued to weaken, especially for micro, small and medium-sized enterprises (MSMEs). In early September 2021, the government announced that it would pay unpaid contributions including previous incentives and applicable tax refunds of Rs 56,000 billion. Although the announcement was belated, it was a much-needed respite for plastics exporters. This will reduce the working capital scarcity for over 45,000 SMB units, ”said Goenka.