Page 12 - Plastics News December 2025

AIPMA AT WORK

AIPMA also proposes to Govt of India to allocate fund for Export
Incentives for India’s Plastic MSME’s to boost export of India’s plastic
finished products.

SUPPORT FOR THE PLASTIC
RECYCLING SECTOR: Indian Plastic recycling sector is growing at a rapid pace and the EPR

a.) Financial Assistance: The GST on mandate has given the industry a significant push, India is now recycling
the recycled plastic material is 18%. It 60% of its plastic waste. however, the sector is still in a nascent stage
and requires support from the government on various fronts like
needs to be brought down 5%. Also, Incentives for recycling sector and bring down GST to nil on recycling
recyclers shall be exempted from the
GST for 1st five years of their machinaries etc.
establishment.
3. AIPMA propose to Govt India :
1. Reduce GST to NIL for plastic waste for recycling.
b.) New HSN Code for recycled 2. Resuce GST from 18% to 5 % on recycled plastic granules only on
plastics named as recyclate plastics
must be created. the conversion cost of recycled granules.
3. Reduce GST to NIL on recycling machinery to increase recycling
companies in india.
c.) Infrastructure development: ECO - 4. 20 % subsidy across India for buying capital equipment for recycling.
parks must be set up near the waste
generation points with sorting 5. Promote ECO-parks with sorting, recycling, and innovation hubs
facilities.
In order to promote ease of doing business in the country and achieve
the vision of generating employment and promoting exports through
"Make in India" with "Zero effect and Zero defect" in manufacturing.
producing sustainable products, and adhering to quality standards
necessitate significant investments in cutting-edge technologies,
research, development, and innovation will boost the export of value
added plastic items and increase its share in the total plastic exports. .

TECHNOLOGICAL UPGRADATION
4. There is essence of Technological Upgradation Fund for plastic
FUND (TUF) processing sector. This would facilitate augmenting of investment,
productivity, quality, employment, exports along with import
substitution in the plastic processing sector.

AIPMA propose to Government of India:
For allocation of Technical Upgradation Fund (TUF) around INR 2500
crores for 5 years for the plastic processing sector in line with the textile
sector.

Plastic processing sector, predominantly comprising MSMEs (around 85
%). Its difficult for MSME’s to invest in infrastructure setup. There is a
pressing need for establishing ready facilities in terms of land and
building, power-water-sewage connectivity, road connectivity, beside
other basic things including clearances in hand required to start the
operation for MSME’s, plastic industry is very keen to be part of this.
MSME’s can come with machinaries, setup and start operation
5. PLUG AND PLAY IN PLASTIC SECTOR immediately. This would be the game changer for plastic processing
sector.

Such mechanisam would help sector to create further employment
opportunities,boosting export and country’s Economic Growth.

AIPMA propose to Government of India:
1. Allocation of separate fund for establishing ready facilities.
12 PLASTICS NEWS Page 3 of 4 December 2025