Focus on inclusion of plastics in GOI’s PLI scheme to boost polymer production, expand membership; seek new trade agreements & a level-playing field for exporters
The Plastics Export Promotion Council of India (PLEXCONCIL), the apex trade body for plastics exports sponsored by the Union Ministry of Commerce & Industry, Government of India, announced the appointment of Mr Arvind Goenka (M/s. RMG Polyvinyl India Ltd.) as Chairman and Mr. Hemant Minocha (M/s. Rajiv Plastics Pvt Ltd.) as Vice Chairman amongst other office bearers of its newly constituted Committee of Administration (COA) after its recently held AGM.
The Regional Chairmen are as follows: Regional Chairman WEST – Mr Saurabh Kalani (M/s. Flexituff Ventures International Ltd.; Regional Chairman EAST – Mr. Prasan Lohia (M/s. Merino Industries Ltd.); Regional Chairman SOUTH – Mr. Y.V. Raman (M/s POCL Enterprises Ltd.); and Regional Chairman NORTH – Mr Vikram Bhadauria (M/s. Alok Maslebatches Pvt Ltd.). The Panel Chairmen are: Mr. Jagdish Gupta (M/s. Stylam Industries Ltd.) – Panel Chairman Floor Coverings, Leather Cloth & Laminates; Mr. Pradip Thakkar (M/s. Mechemco Industries) – Panel Chairman FRP Products; Mr. Dhruv Sayani (M/s. Crystal Plastics & Metallizing Pvt Ltd.) – Panel Chairman Consumer & Houseware; Mr. Benjamin Cherian (M/s. Raj Hair International P.Ltd.) – Panel Chairman Human Hair & Related Products; Mr. Vimalchand Rathod (M/s. Flair Pen and Plastic Industries Pvt Ltd.) – Panel Chairman Writing Instruments; Mr. Rajiv Chitalia (M/s. Electrofocus Electricals Pvt Ltd.) – Panel Chairman Miscellaneous Products; Mr. P. Mohan (M/s. Sakkthi Polymers) – Panel Chairman Pipes & Fittings; and Dr. S.S. Rajpathak (M/s. Garware Technical Fibres Ltd.) – Panel Chairman Cordage & Fishnets.
Mr. Arvind Goenka, Chairman, PLEXCONCIL, said, “Plastics are perhaps one of the most versatile products and are being increasingly used in a wide range of applications. We request Government to frame an attractive PLI scheme for boosting polymer production and becoming AtmaNirbhar. A PLI scheme is very important to enable manufacturers invest in plant & machinery and increase their capacity. Backed by strong government support-planned investment of over USD 50 million, as many as 10 plastic parks with state-of-the-art infrastructure are being set up to boost domestic production, employment and achieve environmentally sustainable growth.” He added, “I have made it my mission to focus on the Council’s primary objective of expanding our membership multi-fold in a 50,000 strong processing industry if we are to achieve our US$ 25 billion target. We have also identified 50 specific product groups that have immense export potential. The Council will provide credible information about export markets to its members regularly by way B2B exhibitions, seminars, participation in foreign exhibitions and also by way of setting up warehouses & permanent exhibitions in markets like USA & Europe.”
Talking about the key priorities, Mr. Goenka added, “PLEXCONCIL is of the view that the RoDTEP rates for plastics products should be fixed in line with MEIS rates. Indian processors are not at level playing field when comparing our cost of production to those enjoyed by our competitors in the ASEAN region. Logistics form a very integral part of export cost to plastics’ processors and this must be reduced in line with global average to boost our competitiveness. Logistic costs & Electricity costs are very high in India as compared to NEA countries. Either reasonable rates are offered to exporting units or a reasonable RoDTEP rates are fixed to partly compensate the extra costs. Free Trade Agreements need to be renegotiated to boost plastic exports. India’s plastics are mainly exported to Europe, North America and WANA region; and we urge the Government to forge a trade agreement with these regions/countries to increase opportunities and recognition for Indian manufactured products in these regions.”
Members of PLEXCONCIL have suggested that the Government should reduce the lead time for refunds (MEIS / GST) for exporters; reinstate GSP and sign an FTA with major export destinations particularly the United States; increase the rate of Drawback; simplify manufacturing and customs laws; improve the import clearance assessment systems; and work towards improving the Ease of Doing Business in India.
About Free Trade agreements, Mr. Goenka was of the view that India is losing on exports of Value added plastic goods for export to USA, UK, WANA regions due to no Free Trade Agreements and also not benefitting under the ASEAN & SAARC FTA’s as they were not negotiated favouring plastic finished goods exports. Rather they favour imports of plastic finished at NIL or highly preferential rates. Share of imports from India is less than 2% in case of UK & USA and less than 1% in case of EU-27 & ASEAN. Share in Africa’s imports is 4% and that with SAARC is only 15% for plastic goods. It would be his endeavor to bring this to the knowledge of the policy makers and request that existing FTA agreements be negotiated favoring plastic exports from India and new agreements be forged with importing blocs to increase presence of India’s plastics goods in the world market.
|Comparison of Import of Value Added plastics from India & World|
|Imports from WORLD||Imports from INDIA||India’s share|
|US$ Million||US$ Million|
|Imports by USA||110000||1500||1.36%|
|Imports by UK||24000||410||1.71%|
|Hat Imports by EU-27||219000||1700||0.78%|
|Imports by ASEAN||44000||358||0.81%|
|Imports by WANA||24000||1000||4.17%|
|Imports by SAARC||3250||508||15.63%|