Page 13 - Plastics News January 2018
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AipmA At work
• Existing antidumping duty on important raw 4. Additional incentive to the Plastic industry under
materials like Polystyrene and PVC etc. should Foreign Trade Policy 2015-2020
be abolished immediately and constraints shall Reference was made to the recent announcement
be used while imposing antidumping duties in by Government of India (as on outcome of Mid-term
future on such raw materials.
review of Foreign Trade Policy) to offer incentive
• Levy of Anti-Dumping Duty on Poly Vinyl Chloride to labour intensive segments and MSMEs. He was
should be removed as 60% of PVC consumed is informed that the plastic industry in India industry
imported in the country in wake of inadequate spans the entire country and hosts more than 3,000
local manufacturing capacity. exporters. It employs about 5 million people and
comprises more than 30,000 processing units, 85-
• Antidumping duty when levied or reviewed,
should also address the competitiveness of the 90 percent of which are small and medium-sized
end products made from the products or by enterprises. Export of plastic products from India
using such machineries subject to antidumping stood at US$ 7.64 billion in FY 2015-16. During 2015-
duty as in most cases antidumping duties are 16, major importers of Indian plastic products were
not levied on the end products. This bias makes US (US$ 652.28 million), China (US$ 480.8 million),
the domestic processors totally uncompetitive UAE (US$ 368.16 million), UK (US$ 271.67 million),
against their competitors in other countries who Germany (US$ 256.2 million), Turkey (US$ 246.86
do not have to pay any Anti-dumping Duties on million), Italy (US$ 208.29 million), Iran (US$ 194.5
their raw materials. million), Nepal (US$ 141.2 million) and Bangladesh
(US$ 136.27 million). Domestic consumption of plastic
2. Inclusion of Plastic as one of the focus sector in Make is expected to touch 20 million Metric Tonnes by 2020.
in India programme of India Make in India is a major He was informed that the majority of exporters are
national programme of the Government of India under distress due to delay in input tax credit and
designed to facilitate investment, foster innovation, IGST refund. They are also facing severe shortage of
enhance skill development, protect intellectual working capital due to the delay in refunds. AIPMA
property and build best in class manufacturing requested Hon’ble Minister to extend the recently
infrastructure in the country. The primary objective announced incentives to the Plastic industry within
of this initiative is to attract investments from across the framework of Foreign Trade Policy 2015-2020.
the globe and strengthen India’s manufacturing
sector. While 25 sectors have been included in the 5. Review of Free Trade Agreements signed by India
programme, the crucial plastic sector has been with various countries
excluded. Due to huge potential growth of this Many finished products of Plastics are imported
industry, various global companies are keen to in to India with preferred tariff rates under FTA
extend their footprints in India. Hon’ble Minister of making it difficult for local processing industry to
Commerce & Industry, Govt of India was requested remain competitive. This has undermined growth of
to include Plastics as one of the focus sectors in manufacturing resulting in to loss of opportunity for
Make in India programme of Govt of India. This will employment generation and creating India as sourcing
create additional employment opportunities, utilize Hub. Therefore, Government of India should review
huge talent base in the country and empower various and assess plastic finished goods imported under
segments of the industry. FTA’s. Following support from Hon’ble Minister of
Commerce & Industry was requested:-
3. Pre Budget proposals for the consideration of
Government of India Pre-Budget proposal prepared • Government of India may like to review and assess
by AIPMA for Plastic Industry for the year 2018-19 was plastic finished goods imported under various
submitted. Hon’ble Minister of Commerce & Industry FTA’s, which do not meet the specific condition
was requested to forward and recommend points in of Rules of Origin.
the proposal for consideration of Finance Ministry.
13 Januar y 2018 Plastics News
