Indian plastic industry needs to grow 2.5 times in next 8 years: AIPMA
NEW DELHI: The Indian plastic industry should grow 2.5 times in the coming eight years so that the five year plan target of 20 kg per head by 2020 can be attained, according to All India Plastics Manufacturers’ Association (AIPMA).
Presently, India is processing 8 kg plastic/head/year, while the global average stands at 28 kg per head per year. Moreover, China processes 56 million tonnes of plastic while India at 8 million tonnes. The industry body feels tha India needs to work in the direction of attaining China’s growth level as its one-year growth is nearly India’s overall capacity.
While talking exclusively to SME News, Jayesh Rambhia, president of AIPMA, said, “China processes 56 million tonnes of plastic, India 8 million tonnes. China’s growth in a year is almost as much as our total capacity. Chinese imports have captured 25% finished goods market and is growing fast. Consumption is growing faster than industry and is being captured by Chinese imports.”
It is believed that the Indian plastic industry is growing at a fast pace but the market is getting fast captured by the cheap Chinese imports. Centre should promote foreign direct investment (FDI) in the plastic industry as China has been able to strengthen its position in the global market through this concept.
Rambhia also said, “With foreign direct investment, China also got technology, management, product designs, marketing network from USA & EU investors. This made China strong in Exports, generated jobs, revenue & made China superpower. China has given policy preference for processors to grow. Material, mould, machine makers grew as processors grew.”
With the aim to boost the presence of the plastic industry, AIPMA has decided to bridge to connect Indian plastic industry with global opportunities. To enhance processing sector to fight rising imports we need to partner with world.
AIPMA has inked memorandum of understanding (MoU) with Society of Plastic Industry in USA, British Plastic Federation, ASSOCOMOPLAST Italy & European Plastic Converters : federation of 50 European national and product specific associations in plastic industry. MOU consists opportunity to attend events, share market info, support members to increase bilateral trade, barter of publication space, supporting Plastivsion India etc.