The government policy to push investment in infrastructure is expected to lead to rise in consumption of plastic products in the country, according to a knowledge paper - ‘Sustainable infrastructure with plastics’ – jointly prepared by FICCI and Tata Strategic Management Group (TSMG).
“With Government's current campaign on 'Make in India' which has a special focus on the chemical industry and aims to turn the country into a global manufacturing hub, a tremendous growth in the plastic processing sector is expected especially in downstream industries. The government should not hesitate to provide better infrastructure and favourable policies. With a step already being take in that direction, plastics are bound to find tremendous use in the infrastructure space,” said the paper.
The Government of India is taking every possible initiative to boost the infrastructure sector with investments of Rs 25 lakh crore over the next 3 years in roads, railways and shipping infrastructure.
Investments in water and sanitation management, irrigation, building & construction, power, transport and retail have been encouraged. Plastics play an important role in these sectors through various products like pipes, wires & cables, water proofing membranes, wood PVC composites and other sectors. Consequently, higher investments in these sectors will drive the demand for plastics.
The knowledge paper stated that plastics processing industry has grown at a CAGR of 10 percent 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 percent from FY15 to FY20 to reach 22 MMTPA. In value terms, the plastic processing industry has grown at a CAGR of 11 percent from Rs 35,000 crore in FY ’05 to Rs 100,000 crore in FY15.
The 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.
The Indian plastic industry is making significant contribution to the economic development and growth of various key sectors in the country which 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 in bringing foreign investments and thus India’s vision of becoming a manufacturing hub.
The knowledge paper noted that in the last decade, several new applications of plastic products have emerged in several sectors boosting the industry further. For example, long fibre reinforced thermoplastic for automotive industry, fibres that can trap infra-red radiations, packaging that can increase the shelf life of products etc. have created demand for plastics which were in their nascent stage in India.
Source : http://www.business-standard.com