PLEXCONCIL Calls for Cutting Import Duty on Polymer
#PlasticsExportPromotionCouncil #PLEXCONCIL #PolymerImportDuty #PlasticsIndustry“Import Duty on polymer, the raw material for the plastics industry, should be reduced from the current 10 percent as it would help improve export competitiveness of value-added products. Raw material cost is a big part of input costs and in many cases, a major factor that tends to make Indian plastics exports less competitive compared to China and other countries.” - Hemant Minocha, Chairman, PLEXCONCIL
January 2023: Plastics Export Promotion Council (PLEXCONCIL) has called for cutting import duty on polymer, low-cost finance and lower threshold for the Production Linked Incentive (PLI) scheme to help the plastics industry.
Presenting the industry wish list for the Union Budget 2023-24, Hemant Minocha, Chairman -PLEXCONCIL said as India emerges as the global sourcing hub, the MSME-dominated plastics industry is expected to play a major role. India’s plastics export has been growing at a CAGR of 12 percent and PLEXCONCIL plans to double exports to reach US$ 25 billion by 2025.
Import Duty on polymer, the raw material for the plastics industry, should be reduced from the current 10 percent as it would help improve export competitiveness of value-added products. Raw material cost is a big part of input costs and in many cases, a major factor that tends to make Indian plastics exports less competitive compared to China and other countries, Hemant Minocha said.
Similarly, the Import duty on value added products, especially on low value and cheap products must be made at least 20 percent. This will act as a deterrent to imports of cheap/ low quality products and boost domestic manufacturing, he said
As a vast majority of Indian plastics processors belong to the MSME sector, PLEXCONCIL said the prevailing PLI threshold of around Rs. 100 crore must be reduced for the industry as it would boost manufacturing and exports from this segment.
The Council has also called for incentives such as making land available for setting up of manufacturing units at reduced rates and the Centre’s subsidies on electricity and water.
Pointing out that high cost of finance in India is disadvantageous to exports, PLEXCONCIL urged for a reduction in cost of finance which is crucial to boosting exports.
At 13 percent of GDP, logistics costs in India continue to be much higher than global average and these costs also must be reduced, said Hemant Minocha, calling for subsidies in landlocked states and export clusters.
Appreciating the recent Free Trade Agreements with Australia and UAE, PLEXCONCIL expressed the confidence that similar arrangements with other countries should be expedited to help the business community in general and MSMEs in particular.
About PLEXCONCIL: The Plastics Export Promotion Council (PLEXCONCIL) – which acts as a bridge between the Industry and the Government - was established by the Ministry of Commerce & Industry, Department of Commerce, Government of India on 15th July, 1955, as a non-profit organisation. It was one of several Export Promotion Councils (EPCs) launched by the Government to project India's image abroad as a reliable supplier of high-quality products in order to give a boost to the country’s exports.
Products from the Indian plastics industry are exported to over 200 countries across the globe.
PLEXCONCIL is the apex body of the plastics industry in India and represents over 2,500 exporters who manufacture/export plastics products ranging from plastics raw materials to semi-finished and finished items. The Council has its headquarters in Mumbai, and regional offices in New Delhi, Kolkata, Chennai and Ahmedabad.
PLEXCONCIL has conceived and conceptualised PLEXCONNECT 2023 – the first ever export focused exhibition for plastics that is scheduled to be held at Bombay Exhibition Centre, NESCO, Mumbai from 15th to 17th June, 2023. For updates: https://plexconcil.org/
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