Page 18 - Plastics News March 2019

AIPMA AT WORK

Plastic processing sector comprises of over 50,000 units, of It is learnt that under a new treaty, China had demanded
which over 80% in MSME segments, which find technological duty exemption on 85% products it is exporting to India,
up-gradation and fresh investment unviable, despite ever and Government is mulling over an FTA/agreement,
increasing demand of plastic products, primarily due to granting them duty exemption on 75% products, they
cost disadvantages, outdated technology, low energy export to India. As it is the Indian companies find it difficult
efficient machines, etc., compared to their counterparts, to compete, this kind of FTA could kill some of the MSME
who use highly productive efficient machines & latest sector. The Chinese system of local taxation and facilities
modern technology in far-east, Europe and the Americas. granted to Chinese companies are unknown, under their
opaque policies. This does not offer, and is not a level
In order to address this, AIPMA has recently submitted
a proposal on Technology Upgradation Fund Scheme for playing field for Indian companies. This will affect MSME
Plastic processing industry to the Hon’ble Minister of cos very adversely.
Commerce & Industry. The objective of this proposal is to Whilst many products are imported at nominal duty or
promote ease of doing business in the country and achieve no duties, the raw material is freely exported. The value
the vision of generating employment and promoting addition is when we export finished goods and vice versa.
exports through "Make in India" with "Zero effect and Zero Aipma tried to represent to Govt to highlight the above,
defect" in manufacturing. The proposed scheme would but were asked to produce data. It is not easy for us to
facilitate augmenting of investment, productivity, quality, collect data from 50,000 units spread all over the country.
employment, exports along with import substitution in the We are not permitted to get the GST data, which would
plastic industry. It will also indirectly promote investment give accurate details. The production data, specially
in plastic machinery (having benchmarked technology) GST data, is kept confidential, and not shared. Physically
manufacturing.
collecting data from 50,000 units, is a mammoth, and
If this scheme is approved by Govt of India, the plastic time taking exercise, which we are hardly equipped to do.
processing industry is expected to witness an additional AIPMA looks forward for continued engagement with Shri
employment generation of just under a Million by 2023- Suresh Prabhu, Hon’ble Minister of Commerce & Industry
24, besides increase in production of Plastic from current for support to AIPMA for the development and problem
20 Million Tons to 34 Million Tons and revenue growth of solving of our industry.
more than 9% CAGR. It is also expected that export of
plastics finished goods will nearly nearly double from US
Deepak Ballani appointed as
$ 8.0 Billion currently to US $ 15.0 Billion in next 5 years.
Hon’ble Commerce & Industry Minister is expected to Director General of AIPMA
consider and approve the TUF proposal submitted by
AIPMA.There are issues of grave concern, leading to grater
dependence on imports of finished products at substantial The All India Plastics Manufacturers’ Association
outflow of foreign exchange and undermining “Make in (AIPMA) in the Managing Committee Meeting held on
India” initiative. 23rd February 2019 appointment Mr. Deepak Ballani as
Director General.
It is further alarming for the industry specially MSME, in
rapidly growing imports from countries with special or Mr. Ballani is a highly experienced, successful and well-
zero FTAs. Indian companies have to pay duty & taxes, regarded officer with more than 26 years of experience
and competing with imports becomes a challenge. in Industrial Development. He is a keen strategist
& implementer having comprehensive national and
The situation is so ironical that an organization wanted to international experience in creating development
make a plastic label for mass distribution, “Buy Indian, Do programmes specially for Micro Small and Medium
Not use Chinese products”, they ended importing it from enterprises. He has worked at senior positions in
China, as India was too slow & very expensive. A small various reputed organizations in planning, directing and
scale unit with a GST exemption of 40 Lakhs turnover, facilitating operations. In this new role, Mr. Ballani will
could have done it here.
spearhead strategic growth of Plastic industry in India.

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