Favorable market conditions and increasing demand for domestic goods in key destinations such as the USA and Europe are cited as driving factors.
According to Arvind Goenka, Chairman of the Plastics Export Promotion Council of India (Plexconcil), India’s plastics exports are expected to become important destinations such as the USA and Europe by 20-25% to 12 billion due to favorable market conditions and increasing demand for domestic goods.
Goenka said while exporters’ order books are healthy, government support is needed in certain areas to further boost exports as the sector has tremendous job creation potential.
“In the years 2021-22, we expect exports to grow by 20-25%. From $ 9.5 billion in the period 2020-21, it should reach $ 12 billion. From April to May of this fiscal year, we have goods About $ 1 billion worth of exports Government support will help us boost exports significantly, “he said.
However, he admitted that the industry is facing challenges such as insufficient availability and rising raw material quotas (polymers), increasing freight freight, shortage of containers and inverted customs structures due to certain free trade agreements. The reverse tariff structure refers to the taxation of intermediate consumption at higher rates than finished goods, which leads to the build-up of credits and cascading costs.
Thailand and Vietnam, members of ASEAN with whom India has signed a free trade pact, are key players in the sector and will receive preferential access to Indian markets as a result of the agreement, he said.
Goenka said plastic consumption is growing faster, but “polymer production is not increasing at this rate, which is why manufacturers are facing an enormous shortage of raw materials”.
According to Goenka, China’s annual exports from this sector amount to about 70 billion US dollars; Global exports total $ 1 trillion. The US and European markets account for 50% of the country’s total plastics exports.
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Plastic exports could increase 25% in FY22, says the chairman of Plexconcil