“Indian processors are not at level playing field when comparing our cost of production to those enjoyed by our competitors in the ASEAN region,” said Goenka
The Plastics Export Promotion Council of India (PLEXCONCIL), the apex trade body for plastics exports sponsored by the Union Ministry of Commerce & Industry, Government of India, announced the appointment of Arvind Goenka (M/s. RMG Polyvinyl India Ltd.) as Chairman and Hemant Minocha (M/s. Rajiv Plastics Pvt Ltd.) as vice chairman amongst other office bearers of its newly constituted Committee of Administration (COA) after its recently held AGM.
“Plastics are perhaps one of the most versatile products and are being increasingly used in a wide range of applications. We request Government to frame an attractive PLI scheme for boosting polymer production and becoming AtmaNirbhar. A PLI scheme is very important to enable manufacturers invest in plant & machinery and increase their capacity. Backed by strong government support-planned investment of over USD 50 million, as many as 10 plastic parks with state-of-the-art infrastructure are being set up to boost domestic production, employment and achieve environmentally sustainable growth,” said Arvind Goenka, Chairman, PLEXCONCIL.
Indian processors are not at level playing field
Talking about the key priorities, Goenka added, “PLEXCONCIL is of the view that the RoDTEP rates for plastics products should be fixed in line with MEIS rates. Indian processors are not at level playing field when comparing our cost of production to those enjoyed by our competitors in the ASEAN region. Logistics form a very integral part of export cost to plastics’ processors and this must be reduced in line with global average to boost our competitiveness.”
Logistic costs & Electricity costs, as per him, are very high in India as compared to NEA countries. He advocated about either reasonable rates being offered to exporting units or a reasonable RoDTEP rates are fixed to partly compensate the extra costs. Free Trade Agreements need to be renegotiated to boost plastic exports.
He added, “India’s plastics are mainly exported to Europe, North America and WANA region; and we urge the Government to forge a trade agreement with these regions/countries to increase opportunities and recognition for Indian manufactured products in these regions.”
About Free Trade agreements, Goenka was of the view that India is losing on exports of Value added plastic goods for export to USA, UK, WANA regions due to no Free Trade Agreements and also not benefitting under the ASEAN & SAARC FTA’s as they were not negotiated favouring plastic finished goods exports. Rather they favour imports of plastic finished at NIL or highly preferential rates.
Share of imports from India is less than two per cemt in case of UK & USA and less than one per cent in case of EU-27 & ASEAN. Share in Africa’s imports is four per cen and that with SAARC is only fifteen per cent for plastic goods. It would be his endeavor to bring this to the knowledge of the policy makers and request that existing FTA agreements be negotiated favoring plastic exports from India and new agreements be forged with importing blocs to increase presence of India’s plastics goods in the world market.