Page 11 - Plastics News March 2026

FROM THE EDITOR'S PEN

Plastiworld 2025: Setting the Export Agenda
Dear Readers,

With the successful conclusion of Plastiworld 2025 (23rd–25th March), the Indian
plastics industry has taken a decisive step forward in strengthening its global ex-
port positioning. The exhibition delivered on its core objective creating a focused
platform for finished plastic products while enabling meaningful engagement be-
tween Indian manufacturers and international buyers.

Industry Fundamentals Remain Strong

India’s plastics sector continues to be anchored in strong fundamentals. With
over 50,000 processing units, an installed capacity exceeding 16 million metric
tonnes, and employment for more than 4 million people, the industry plays a vital
role in the country’s manufacturing ecosystem.

Exports of finished plastic products are steadily progressing toward the USD
25 billion by 2030 milestone. Policy support, improving infrastructure, and in-
creasing global demand for diversified sourcing continue to support this growth
trajectory.
Navigating Volatility: Indian Plastics Industry in a Shifting Global Landscape
Global Trade & Polymer Markets Under Pressure

The ongoing geopolitical conflicts have had a direct bearing on global energy
markets, and by extension, the plastics value chain. As polymers are closely
linked to crude oil derivatives, price volatility in feedstock has translated into
fluctuating polymer prices across key materials such as PE, PP, and PVC.

Freight disruptions, longer transit times, and periodic supply uncertainties have
further compounded the situation. Global buyers are responding with more cau-
tious procurement strategies, shorter contracting cycles, and an increased em-
phasis on supply security over price alone.

Impact on MSMEs and Processors
For India’s large base of MSMEs, which form the backbone of the plastics pro-
cessing industry, this volatility has created significant operational challenges.
♦ Raw material price fluctuations have compressed margins, especially for pro-
cessors operating on fixed-price contracts

♦ Working capital pressures have increased due to unpredictable input costs
♦ Inventory planning has become more complex, with higher risks associated
with both overstocking and under-procurement

At the same time, smaller players often have limited ability to pass on cost in-
creases immediately, making them more vulnerable during periods of sustained
price instability or might result in shutdown of the plants. This may create the
unemployment affecting economy.

March 2026 PLASTICS NEWS 11