Investment attractive plastics

India’s plastic processing industry is one of the foreign investment attracting sector with a CAGR of 10.5% to 22 million metric ton per annum by fiscal year 2020, up from 13.4 MMTPA in FY15.

“The plastic processing industry has the potential to contribute in bringing foreign investments and thus India’s vision of becoming a manufacturing hub,” said a paper on “Sustainable Infrastructure with Plastics”.

Released on 23 February 2017 by Federation of Indian Chambers of Commerce and Industry, the paper reported a CAGR of 10% growth from 8.3 MMTPA in FY10 to 13.4 MMTPA in FY15.

The industry has grown at a CAGR of 11% in value from Rs.35,000 crore in FY ’05 to Rs.100,000 crore in FY15.

The current low levels of per capita consumption of 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, said the paper.

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 Fast Moving Consumer Goods, it said.

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. fii-news.com