NEW DELHI : The country’s plastic exports are forecast to increase 20-25% to $ 12 billion in the current fiscal year due to favorable market conditions and growing demand for domestic products in key destinations such as United States and Europe, said PLEXCONCIL President Arvind Goenka.
The Chairman of the Plastics Export Promotion Council of India (PLEXCONCIL) also said that although exporters’ order books are healthy, government support is needed in some areas to further boost exports as the sector has enormous potential for export. job creation.
“In 2021-2022, we expect 20-25% growth in exports. It is expected to hit $ 12 billion against $ 9.5 billion in 2020-21. In April-May of this fiscal year, we exported goods worth approximately $ 1 billion. Government support will help us to dramatically increase exports, ”he told PTI.
However, he said the sector is facing challenges such as insufficient availability and rising rates of raw materials (polymers), increasing sea freight, shortage of containers and the reverse tariff structure due to certain free trade agreements.
The reverse tariff structure refers to the taxation of inputs at higher rates than finished products, resulting in the accumulation of credits and cascading costs.
Thailand and Vietnam, members of ASEAN with which India has concluded a free trade agreement, are key players in the sector and enjoy preferential access to Indian markets as a result of the agreement, a- he declared.
Goenka said plastic consumption is increasing at a faster rate, but polymer production is not increasing at this rate, so manufacturers face a “huge” shortage of raw materials.
The sector faces fierce competition from China, and government support on these issues would help us improve the competitiveness of domestic products in international markets, he said.
China’s annual exports from the sector are around $ 70 billion, Goenka said, adding that global exports are around $ 1,000 billion.
The United States and Europe account for about 50% of the country’s total plastic exports.
“We have taken our issues to the government. The government is also expected to announce the applicable rates of RoDTEP (Remission of Duties and Taxes on Export Products) for the sector soon as it is currently being delayed,” Goenka said.
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