The Plastics Export Promotion Council (PLEXCONCIL) recorded an 8% increase in exports during the financial year 2024–25, with total exports reaching $12.5 billion, up from $11.5 billion in 2023–24.
This sustained performance underscores the sector’s rising global competitiveness, strong international demand, and expanding footprint across key markets, reinforcing India’s position as a leading global supplier of high-quality plastic products.
Navigating Tariff and Trade
However, this growth comes amid global trade experiencing ongoing challenges, including shifting tariff structures and the uncertainty surrounding international trade agreements. While key markets including the United States, China, the UAE and Brazil have remained strong, the plastics sector has not been immune to the impact of global tariff fluctuations that affect industries worldwide.
Despite the growth, India’s plastics sector faces ongoing tariff pressures, particularly from key markets like the US. Earlier this month, India faced a 26% tariff on its export to the United States. However, White House annex listing future reciprocal tariff rates differed for some countries including India, which included a 27% reciprocal tariff for the country.
Despite these challenges, several key product categories have shown strong performances. Plastic Films & Sheets saw a 15.9% increase, rising from $1,750 million to $2,028 million, while FIBC, Woven Sacks, Woven Fabrics & Tarpaulin grew by 16% to reach $1,571 million, up from $1,355 million.
“India’s plastics export sector has demonstrated remarkable performance, growing by 8% to reach USD 12.5 billion in 2024–25”, said Vikram Bhadauria, Chairman of PLEXCONCIL. “This growth is a testament to our industry’s innovation, adaptability, and strong global demand across diverse product categories and geographies.”
In response to these tariff challenges, the plastics industry is looking to further strengthen its global competitiveness by advocating for the early conclusion of key international trade agreements, including a Bilateral Trade Agreement (BTA), with the United States and Free Trade Agreements (FTAs) with the United Kingdom and the European Union. These agreements are important for mitigating the effects of tariff instability and boost India’s export capabilities.
“With expanding opportunities in emerging markets such as Africa, Latin America, and the CIS region, and with critical trade agreements on the horizon, we are confident in achieving our target of 12% export growth for 2025–26,” said Sribash Dasmohapatra, Executive Director of PLEXCONCIL.
He concluded by adding that the future of India’s plastics exports looks strong and globally competitive.
Source: outlookbusiness.com
