Amidst the global trade dynamics, India finds itself on course with record exports. The country registered the combined value of merchandise and services exports at US$776.3 billion for the fiscal year 2023-2024. The implementation of initiatives such as Production-Linked Incentives (PLI) and the Make in India campaign has fueled the remarkable growth.

At the World Trends & Plastics & Rubber Technology Summit held during CHINAPLAS 2024, Dr. Raju Desai, Vice President, Plastindia Foundation, offered valuable insights to participants seeking to navigate the evolving landscape in India.

Adsale Plastics Network had a quick chat with Dr. Raju Desai at the summit, let’s hear what he said about the latest outlook of the Indian plastics industry.

Dr. Raju Desai, Vice President, Plastindia Foundation.

What opportunities does the local market present to the Indian plastics industry? What is s the most potential application sector in the local market?

Raju Desai: India is the third largest plastics consumption market after China and the US. The Indian plastics processing industry faces two opportunities: a very large home market and an emerging export market. So put together there are tremendous opportunities. The consumption of plastics is on the rise. Plastics make packaging, automobile, consumer goods, and so on.

The largest sector in plastic products is packaging. Different kinds of packaging, including food packaging, packaging for transportation, etc., comprise more than 50% of the market. The second largest sector is automotive, which is also driving the growth in India.

Meanwhile, what market potential does the Indian market offer to the global plastics industry? You mentioned that it is a very large market.

Raju Desai: The Indian plastics processing industry is growing at a rate of more than 12%, which is double of the country’s GDP, so it provides very good potential for suppliers all over the world.

India is promoting the “Make in India” initiative, which does not restrict to Indian companies. Most of the companies investing in India have their own manufacturing facilities or partners and distributors in India. When it comes to “Make in India”, we do not talk about only India manufacturers, but also foreign manufacturers that set up their facilities in India. 

You also mentioned exports, what are the most popular products export to the global market from India?

Raju Desai: As of now, packaging material is the largest category of exports for the plastics industry. It is now followed by automotive component, which are being accepted in the global market.

Sustainability and digitalization in progress

Sustainability and circular economy are the biggest concern in the plastics industry. How do you describe the progress in sustainable development in India? What are the major challenges ahead?

Raju Desai: Sustainability is a matter of concern for all over the world. India is also playing its role. The Indian plastics industry is working on and committed to biopolymers, recycling and other sustainable solutions. The Indian government is committed to promote sustainable solutions, including recycling. Whatever the government is committed for the environment, the Indian plastics industry aligns and works with them.

I think there is a universal problem of collection and segregation. India is also facing the similar problem, but the cost of labor in India is relatively cost effective. We can afford to do better than other countries. For example, most of the developed countries are having about 4-5% of recycling of post-consumer goods while India already have more than 9%.

Lastly, how about the development of digitalization in India?

Raju Desai: I think India has very strong capability in Artificial Intelligence (AI). But at the moment, there is no real application of this technology as far as the plastics processing industry is concerned. It is just a matter of time. We will see big changes in the time to come.