The Indian plastics industry has huge unrealized growth potential given the presently very low usage levels compared to the global standards. At the same time, this industry in the coming decades has to promote sustainable development by investing in technologies that protects environment and stimulates growth while balancing economic needs and financial constraints.
Plastic waste challenge has to be managed better. Linkage of plastics waste management with prospects of recycling industry will be a good idea going ahead.
The Indian plastic industry is making significant contribution to the economic development and growth of various key sectors in the country that includes Automotive, Construction, Electronics, Healthcare, Textiles, and FMCG. The developments in the plastic machinery sector are coupled with developments in the petrochemical sector, both of which support the plastic processing sector. This has facilitated plastic processors to build capacities for the service of both the domestic market and the markets overseas.
Today, the plastic processing sector comprises over 30,000 units involved in producing a variety of items, gaining notable importance in different spheres of activity with per capita consumption increasing. The plastic processing industry has the potential to contribute to bringing foreign investments and thus promote India’s vision of becoming a manufacturing hub.
Studies indicate that plastics processing industry has grown at a CAGR of 10% in volume terms from 8.3 MMTPA in FY10 to 13.4 MMTPA in FY15 and is expected to grow at a CAGR of 10.5% from FY15 to FY20 to reach 22 MMTPA.
In value terms, the plastic processing industry has grown at a CAGR of 11% from INR 35,000 Cr. in FY ’05 to INR 100,000 Cr. in FY15. Current low levels of per capita consumption (11 Kg), increased growth in end-use industries, higher penetration of plastics in various existing applications and ever growing range of new applications could further propel the growth of plastics in India.