After gaining over 30 years of experience with various reputed organisations for strategic business growth and expansion, establishing of systems and procedures and growing revenue streams, Sribash Dasmohapatra has been at the helm of The Plastics Export Promotion Council (Plexconcil) as executive director since 2017. Throughout his career, he has held leadership positions at large corporate houses, industry bodies and government agencies such as GJEPC. He has been managing business operations with focus on topline and bottomline performance through new business development procedures and service standards, while operating within the tight financial disciplines. He shares his views with Lancelot Joseph. Excerpts:
How has the growth of plastic exports been in this financial year?
Despite challenging conditions in the international markets, India’s plastics exports reached $10.4 billion during April 2023-February 2024, as against $10.9 billion in the corresponding period the previous year, marking a 4.4 per cent decline. This decrease can be attributed to several factors, including slowing economic growth in developed nations, lower polymer prices, and the removal of ‘generalised system of preferences’ (GSP) benefits in the EU. However, there is optimism dawning, as polymer prices have stabilised and started trending upwards since November 2023, indicating positive prospects for the future.
The export of plastics raw materials faced the most significant decline, dropping by 11.3 per cent. On the other hand, value-added plastics exports also experienced a downturn, albeit less severe. Despite these challenges, there has been notable growth in specific product segments, especially in consumer and houseware products of plastics, floor-coverings, leather-cloth and laminates and medical items of plastics.
India is poised to conclude the financial year with record-high exports in several categories, including furniture of plastic, sunglasses, spectacle lenses, cardiac catheters, PVC tubes and pipes, decorative laminates and made-up fishing nets. These positive trends signify the resilience and adaptability of India’s plastics export industry, despite temporary setbacks caused by external factors.
How is the government enabling plastic exports from India?
Exporters in India have benefited from a range of financial incentives, including duty credits and exemptions, which lowered production costs and enhanced competitiveness. Schemes like EPCG and Advance Authorisation have further improved access to capital goods and raw materials, enabling the production of high-quality goods for global markets. Additionally, export-related schemes have promoted market diversification, encouraging exporters to explore new destinations and reduce dependence on traditional markets, while simplified procedures have helped contribute towards the easing of doing business, facilitating smoother trade transactions.
The Market Access Initiative (MAI) Scheme aims to promote India’s exports by focussing on specific products and markets through market studies/surveys, aiding various organisations and exporters. The Export Promotion Capital Goods (EPCG) scheme facilitates the import of capital goods at concessional rates to enhance production capabilities. The Advance Authorisation scheme enables duty-free import of inputs for export production. The Interest Equalisation Scheme supports exporters’ access to affordable financing, while the RoSCTL Scheme provides rebates on state and Central levies and taxes. The RoDTEP Scheme refunds duties and taxes on exported products, benefiting multiple sectors.
Export-related schemes by the government of India offer valuable support to exporters, enabling them to expand their global footprint and contribute to India’s economic growth. While these schemes offer significant benefits, addressing operational challenges and enhancing awareness among exporters are essential for maximising the impact of government support measures.
Collaborative efforts between the government, industry stakeholders and trade associations can create an environment conducive to the exporters’ thriving in the global marketplace.
Indian missions are now also actively involved in the promotion of India’s trade, tourism, technology and investment goals, fostering international partnerships and collaborations. Such collaborative efforts with commercial missions abroad, export promotion councils and industry associations ensure effective monitoring of export performance and timely corrective measures. In a departure from tradition, India’s Foreign Trade Policy (FTP) 2023, announced last year, does not have a five-year target date. The policy instead is long-term and dynamic, as the government makes amendments as necessary. The FTP in addition to other export incentives and initiatives collectively reinforce India’s commitment to fostering trade growth, enhancing competitiveness, and realising its potential as a global economic powerhouse. Furthermore, the FTP provides a comprehensive framework for promoting exports and addressing trade-related challenges. The policy outlines various measures to enhance market access, facilitate trade facilitation and streamline export procedures.
The government’s focus on boosting plastic exports through special economic zones (SEZs) highlights its commitment to economic growth and global trade integration. SEZs offer attractive incentives such as competitive infrastructure, duty-free procurements and tax benefits, making them appealing destinations for businesses. According to the ministry for commerce & industry, these zones effectively promote exports and attract investments. Recent budget proposals aim to streamline SEZ processes, further enhancing ease of doing business and fostering growth. For the plastics industry, SEZ initiatives offer export facilitation, support for sustainable practices, competitive infrastructure, tax incentives and enhanced trade capabilities, driving its expansion and global competitiveness.
Which markets look attractive for Plexconcil, especially in terms of international trade?
Plexconcil focusses on promoting Indian plastic exports globally, targeting key markets such as the US, the EU, the Middle East, Southeast Asia, Africa, Latin America and Oceania. The US offers opportunities in packaging, automotive, consumer goods and construction. The EU market is lucrative for automotive components, medical devices and industrial applications. The Middle East demands plastics for construction, packaging, and consumer goods. Southeast Asia’s expanding markets include packaging, electronics and automotive components. Africa’s industrial growth fuels demand in construction, agriculture and consumer goods. Latin America, with countries like Brazil and Mexico, seeks plastic in automotive parts, packaging, and construction. Oceania, comprising Australia and New Zealand, offers prospects in packaging and automotive sectors. Plexconcil aids exporters in understanding market nuances, regulations, and consumer preferences, facilitating successful market entry and expansion through valuable insights, networking, and promotional support.
Give us a sense of Plexconnext 2024 and the vision of Plexconcil, going forward…
Plexconcil, sponsored by the department of commerce, government of India, is on course to once again organise India’s largest export-focussed plastic expo with Plexconnect 2024. This year’s expo will be twice the size of the previous year’s, as Plexconcil expects participation from over 900 international buyers from 100+ countries. The three-day event is scheduled to take place from 7-9 June 2024, in Mumbai. We have already received registrations from more than 600 buyers representing 65 countries who are eager to partake in the pivotal Reverse Buyer-Seller Meet (RBSM) during Plexconnect 2024.