Incentive Scheme for Plastic Industry

Indian Plastic Federation (IPF) along with the Plastic Export Promotion Council (PLEXCONCIL) has planned to discuss the sluggish growth of the Indian plastic industry with the Ministry of Commerce, Government of India. The agenda of the meeting would be to expand the incentive scheme to the entire plastic industry in India, which is currently dominated by the SME sector and industries such as textiles and leather.

According to Nemish Sayani, Chairman, PLEXCONCIL, “We will firmly recommend the government to provide for industrial plastic scrap imports under the Open General Licence (OGL). Speeding up the process of tax refunds and liberalising the import of industrial plastic scrap will facilitate exports.”

Mr Sayani further said, “Implementation of such a policy will enable Manufacturers in India to make products such as carry bags and other utility goods at rates that would be competitive as compared to those manufactured in Malaysia, Thailand and other Asian regions.”

Furthering the statement of Mr Sayani, KK Seksaria, President, IPF, said, “Our primary concern is to request the government to exempt the imported plastic goods of custom duties. This exemption will largely help in overall reduction of costs involved in the manufacturing of plastic products. We will request the government to intervene in polymer deals and ensure a smooth supply of polymer products.”

In 2007-08, plastic goods worth Rs 16,600.5 crore were exported to the US and UAE markets, which registered a growth of 10%. However, the business witnessed a slump in the last financial year due to the sluggish supply of plastic raw materials, along with a consistent hike in the prices.