Page 11 - Plastics News December 2025

AIPMA AT WORK

a.) The major challenge confronting India's exports lies in the lack of
avenues to engage with buyers in foreign markets, particularly for Indian
MSME companies driving the export of plastic goods. AIPMA emphasizes
the need for support from the Indian Government's Diplomatic Missions
in these countries to facilitate connections between Indian exporters
and overseas buyers. Regular access to data on overseas buyers is
essential for expanding our export market effectively.
BOOSTING INDIA’S FINISHED
PLASTICS PRODUCTS EXPORT : b.) The plastic processing sector, predominantly comprising MSMEs, The
industry is present across the country and has more than 3000 exporters.
India's export of finished plastic It employs more than 4 million people in the country and constitutes
products has shown a declining trend 50,000 processing units.Sector plays a pivotal role as a supplier to
(Annex 2). Therefore following steps numerous industries , despite not being among the 14 sectors included
can be taken to boost Indian exports in the PLI scheme and despite its significant contribution, this sector does
of finished plastic products. not directly benefit from the scheme. To foster innovation and promote
sustainability practices, it is imperative to include the plastic processing
a.) Government marketing support to industry in the PLI scheme.
identify and connect with overseas SUMMARY OF EXPORT OF CH 39 FINISHED GOODS
buyers (Marketing support for USA, COUNTRY PRODUCT 2021 2022 2023
Europe and Dubai) and by opening
warehouses. INDIA FG EXPORT CH 39 4.55 4.62 4.21

b.) The RoDTEP rate which is currently CHINA FG EXPORT CH 39 101.28 107.07 100.54
on the lower side for most of the 4.42 4.55 4.21
finished plastic products be increased THAILAND FG EXPORT CH 39
to 5% in line with textile industry VIET NAM FG EXPORT CH 39 5.10 5.66 5.98

c.) Duty Drawback should be increased BILLION USD
2.
2.5% in line with textile industry
,
The above facts and figs indicates China’s export is 25 times higher than
d.) There is a need to simplify export India’s export. There is a big scope for boosting India’s export of finished
processes, and mechanisms to secure plastc products. PLI incentives will help sector to aim for boosting export
export payments for Indian MSME, 4 times in next 3 years. And also it would help sector to create further
expansion of the role of ECGC, and employment opportunities,import substitution, boosting exports and
optimization of overseas warehousing country’s economic Growth.
under Market Access Initiatives (MAI)
to benefit small exporters. c) All India Plastics Manufacturers Association conducted study on
Import Substitution of plastic finished products. Total import of plastic
e.) Plastic industry needs to be finished products is around INR 36500 crores. Import substitution of
covered under PLI scheme for import plastic finished products is very important, Govt of India should promote
substitution and to enahance export. domestic plastic finished goods industry through various measures.India
should develop a comprehensive action plan to boost local
f.) Indian exporters are currently manufacturing and incentivize plastics finished goods to make India the
facing disparities in ocean freight costs next global plastic product production hub. Its very very important to
compared to competitors like China. consider plastic sector for PLI scheme.
Subsidy 5% on shipping cost should be
considered. d.) Warehouses play a crucial role in managing inventory, streamlining
supply chain operations, and ensuring timely delivery of goods.This will
help for boosting the plastc export.China’s Government helps plastic
sector by setting up warehouses. Similar model is following in countries
like USA , Dubai and Europe.

AIPMA propose to Govt of India to include plastic sector in PLI scheme
and allocate fund for establishing Warehouses in different locations
across the country for plastic sector to boost India’s export and manage
import substitution.
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December 2025 PLASTICS NEWS 11