Boosting India’s Plastic Exports in a Competitive Global Market

The Indian MSME Minister, while speaking at an International Conference on Global Convention for Plastic Industry organized by the Ministry of Micro, Small and Medium Enterprises (MSMEs) in November 2022, in partnership with the All India Plastics Manufacturers’ Association (AIPMA), mentioned that the Indian plastics industry has approximately 50,000 enterprises, most of which are MSMEs contributing Rs 3.5 lakh crore to the country’s economy and generating over 50,000 employment opportunities.

He added that currently, about Rs 35,000 crores of plastic is exported from India and the plastic industry is expected to have an annual turnover of Rs 10 lakh crore and job opportunities for 1 crore people by 2027 along with rise in exports to 2 lakh tonnes.

However, despite showing resilience in certain segments, the overall export figures have seen a decline. For instance, India’s plastics exports fell by 3.5% to $11.55 billion in FY24 from $11.96 billion in FY23. This decline underscores the need for strategic interventions to boost competitiveness in the global market.

One crucial strategy is improving the quality of plastic products to meet international standards. Establishing more stringent quality control processes and obtaining global certifications can increase the acceptance of Indian plastic products in international markets. Investing in modern testing and quality assurance infrastructure will help manufacturers meet these standards consistently, ensuring that Indian products can compete on quality.

Innovation and Diversification

Innovation is key to staying competitive. Increasing investment in research and development (R&D) can lead to the creation of new, high-value plastic products and more efficient manufacturing processes. This includes developing environmentally friendly plastics and improving the recyclability of products, which are increasingly in demand in global markets. By fostering innovation, India can offer a broader range of advanced and sustainable products to the world.

India’s plastic industry should also focus on diversifying its product range to cater to various global markets. The industry has already shown remarkable versatility, exporting a range of products including raw materials, laminates, electronic equipment, medical ware, and consumer goods to over 150 countries, primarily in Europe, Africa, and Asia. Expanding into new product categories and innovative applications of plastics will allow Indian exporters to tap into emerging markets and reduce dependency on a few product types.

With the global shift towards sustainability, there is a growing market for eco-friendly plastic products. Indian manufacturers should invest in producing biodegradable and recycled plastic products. By positioning themselves as leaders in sustainable plastic manufacturing, Indian exporters can attract environmentally conscious consumers and businesses worldwide, aligning with global environmental trends.

Streamlining Supply Chain

Streamlining the supply chain is another vital measure to reduce costs and improve competitiveness. This involves adopting advanced logistics solutions, improving transportation infrastructure, and reducing bureaucratic hurdles in export processes. Efficient supply chain management ensures timely delivery, a critical factor for international buyers who rely on prompt and reliable supply chains.

Specific steps include:

•  Utilizing integrated logistics platforms to coordinate various supply chain activities seamlessly.
• Adopting automated warehouse management systems to optimize storage and retrieval processes.
• Implementing real-time tracking technologies to monitor the movement of goods and ensure timely delivery.
• Setting up regional distribution centres to reduce transit times and improve service levels.
• Using advanced inventory management techniques to maintain optimal stock levels and reduce holding costs.
• Employing data analytics to predict demand accurately, optimize routes, and enhance overall supply chain efficiency.
• Streamlining customs procedures to expedite the clearance process and minimize delays.

Negotiating favourable trade agreements with key markets can provide a significant competitive edge. Strengthening trade relations with major importers of plastic products can open up new opportunities for exporters. Reducing tariffs and easing trade restrictions through bilateral and multilateral agreements will make Indian plastic products more attractive in international markets.

Enhancing the skills of the workforce in the plastic industry is essential for higher productivity and innovation. Government and industry bodies should collaborate to provide training programs focused on modern manufacturing techniques, quality control, and international marketing strategies. A skilled workforce can drive the industry’s growth by adopting best practices and improving overall efficiency.

Government policies play a crucial role in supporting exporters. Increasing export incentives, such as tax breaks, subsidies, and grants for exporters, can reduce the financial burden and encourage more companies to enter the global market. Simplifying the process for availing these incentives can further boost participation, making it easier for businesses to expand their export activities.

In the digital age, leveraging online platforms to market plastic products globally can significantly expand reach. Utilizing digital marketing strategies and participating in international e-commerce platforms can help Indian exporters connect directly with buyers, reducing dependency on traditional distribution channels. This approach can increase visibility and access to new markets.

Finally, keeping a close eye on global market trends and consumer preferences is essential. Regularly analyzing market data to identify emerging opportunities and adapting strategies accordingly ensures that Indian plastic products remain relevant and competitive. This proactive approach allows exporters to stay ahead of market demands and shifts.

By adopting these comprehensive strategies and implementing supportive policy measures, India can boost its plastic exports and secure a stronger foothold in the competitive global market.

India’s export focused exhibition for the Plastics industry

To further prioritize exports, The Plastics Export Promotion Council (Plexconcil), under the Ministry of Commerce, is organizing the PlexConnect 2024 exhibition from June 7-9, 2024 in Mumbai. This flagship event aims to link the global plastics supply chain with the Indian plastics industry.

PlexConnect 2024 offers a distinctive business networking platform designed to connect global buyers with Indian suppliers. The event will particularly focus on inviting selected international buyers of plastics to meet with Indian exhibitors to fulfil their sourcing needs, marking a significant move towards enhancing India’s plastic exports.