According to PLEXCONCIL Chairman Arvind Goenka, the country's plastic exports are likely to increase 20-25 percent to $ 12 billion in the current fiscal year due to favourable market circumstances and increased demand for local goods in key destinations such as the United States and Europe.
Though exporters' order books are solid, the head of the Plastics Export Promotion Council of India (PLEXCONCIL) also stated that government support is needed in some sectors to further drive exports because the sector has a big potential for job creation.
"Exports are expected to increase by 20-25 percent in 2021-22. In 2020-21, it is expected to increase to $ 12 billion from $ 9.5 billion. We shipped goods worth around $1 billion in April and May of this fiscal year. With government assistance, we will be able to greatly increase our exports "he stated
However, he said that the industry is confronted with issues such as insufficient raw material supply and rising pricing, rising shipping freight, container shortages, and inverted tariff structures as a result of some free trade agreements.
Thailand and Vietnam, ASEAN members with whom India is subject to a Free Trade Agreement, are key players in the industry and have preferential access to the Indian markets, he said.
Goenka said that the consumption of plastics is increasing more quickly.
Around 50% of all plastics exports are made by the U.S. and Europe.