Union Budget 2019: Plastics industry seeks sops to double market size to Rs 5 lakh crore by FY25

Despite more states clamping down on its use and the increased awareness on disasters awaiting the planet due to its rampant use, the plastic industry is confident of doubling its size to Rs 5 lakh crore by 2025

Press Trust of India June 27, 2019 14:26:24 IST
Union Budget 2019: Plastics industry seeks sops to double market size to Rs 5 lakh crore by FY25
  • In a pre-budget representation, the plastic industry urged the finance minister not to hike the import duty on raw materials

  • At present the plastic industry is around Rs 2.25 lakh crore, employing 4.5 million, according to the All-India Plastics Manufacturers Association

  • It expects with the right kind of government support it can double to Rs 5 lakh over the next five years

Mumbai: Despite more states clamping down on its use and the increased awareness on disasters awaiting the planet due to its rampant use, the plastic industry is confident of doubling its size to Rs 5 lakh crore by 2025.

And the industry wants the government to handhold them, especially the smaller players within them with some sops like not hiking the import duty in the budget to be presented on 5 July, to achieve this objective.

Union Budget 2019 Plastics industry seeks sops to double market size to Rs 5 lakh crore by FY25

Representative image. AFP.

At present the plastic industry is around Rs 2.25 lakh crore, employing 4.5 million, according to the All-India Plastics Manufacturers Association which expects with the right kind of government support it can double to Rs 5 lakh over the next five years.

It can be noted that many states like Maharashtra, Tamil Nadu, Delhi, and Himachal Pradesh among others have banned, with limited success, use of plastic products like carry bags, PET bottles, plastic cutlery sets in hotels, airports and parties among others. The Centre has also plans to ban single-use plastics by 2022.

In a pre-budget representation, the association urged the finance minister not to hike the import duty on raw materials, "which will result in supply disruption and, in turn, affecting the cost competitiveness of 50,000 plastic processors in the country."

The association also urged the government to increase the customs duty on finished goods to 20 percent so as to stop imports of cheap and unsafe materials.

Further, it said, there should be an imposition of anti-dumping or safeguard duty on import of cheap finished plastic goods and maintaining the minimum gap in customs duty between raw materials and finished goods at 12.5 percent.

"The fast-growing plastics industry can also help the country become a $5 trillion economy, for which the government needs to support MSMEs in terms of good infrastructure, easy financing and favourable regulatory policies," the association said Wednesday in a statement.

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