What Are The Latest Trends In The Plastic Industry In India?

The plastic industry in India had a humble beginning in the year 1957. But the then government did not know what this industry could do for the country's economy. Today, nearly seven decades later, the industry is a major contributor to the economy in both domestic production and exports.

What is the present state of the plastic sector in India?

As per the 2019 PlastIndia report, the total assets of the sector are Rs 5.1 lakh crore. It comprises around 30,000 processing units and 2,000 exporters. And it employs over 4 million people. This significant growth of this sector is attributed to the right government policies, which supported small and medium-sized units by providing them opportunities for growth. It may be mentioned that about 85-90% of the processing units are small and medium-sized enterprises.

The government took the initiative to promote the goods made in the country by setting up the Plastics Export Promotion Council (PLEXCONCIL). Established on 15 July 1955, the council has been made a non-profit organization to project the country as a reliable supplier of high-quality products. It represents over 2,000 exporters who manufacture/trade plastic products including raw materials and finished goods.

The objective of establishing a council was to promote Indian goods in international markets. The Council for Brand Promotion was authorized to participate in international trade fairs and events. India has the strength and the means to become a world leader in plastic production and exports. Also, Indian manufacturers can make all kinds of finished goods from plastic.

In 1996, the Indian government took another step at promoting plastic goods abroad by establishing the India Brand Equity Foundation with the single aim of pushing the export promotion. Unlike PLEXCONCIL, it is a government body purely funded and owned by the government. It acts as a branding and communication partner for the country's participation in global trade exhibitions. It also manages public relations, onsite branding, media advertisements, and digital marketing for exporters.

Plastic production in India

The production of plastic raw materials and finished goods is huge and it is increasing with each passing day. Following are the major types of plastics manufactured in India.

1) Polyethylene Terephthalate (PET or PETE)

It is the most commonly found material as it is used for making beverage bottles, polyester clothing, and ropes. Its advantage is that it is lightweight, strong, and typically transparent. 

2) High-Density Polyethylene (HDPE)

It is a strong product with excellent moisture resistance. Due to these qualities, it is considered more suitable for making cartons, containers, and pipes. Examples of HDPE products are park benches, buckets, and detergent bottles. 

3) Polyvinyl Chloride (PVC or Vinyl)

It is a hard and rigid material which is more suitable for use in building construction and construction work. Building materials like plumbing pipes, rain gutters, and teething rings are made with this material. In addition, it has found use in the medical industry as it is impervious to microbes and can be easily disinfected.

4) Low-Density Polyethylene (LDPE)

A refined version of HDPE, it offers a softer, clearer and more flexible option for creating corrosion-resistance work surfaces and liners inside beverage cartons. It is widely used for making plastic wraps, bubble wraps and garbage bags.

5) Polypropylene (PP)

It is a durable material as it has high heat resistance. Since it can hold hot items for a long time, it is used for making food packing and food storage. Straws, prescription bottles, disposable diapers, hot food containers, and DVC/CD boxes are all made from PP material.

Plastic manufacturers in India produce both raw materials and finished goods to meet the needs of both domestic and international markets.

What Does Future Hold For Indian Textile Industry?

The textile industry in India works under the Ministry of Textiles run by an independent minister. It is the second biggest industrial sector after agriculture and hence plays a crucial role in the growth and development of the economy. It provides employment and contributes to the GDP of the country. Also, it brings foreign exchange with export.

History

The history of textiles in India can be traced back to the Harrapan age. It was found that the people of the Harrapa civilization were familiar with weaving and spinning cotton. During Mughal Empire, India produced 25% of the world’s industrial output, and it continued to the British time. India received a booming sector of textile from the British Empire. Earlier it was located in specific states but today it is widespread.

For example, take cotton. Earlier the cotton-growing belt was limited only to Rajasthan, Maharashtra, and Gujarat. The localization of the cotton belt was due to the availability of raw materials, labour, transport, market, and climate. In the early twentieth century, the Indian textile industry played a crucial role in the economy of Maharashtra. While spinning was centralized in Maharashtra, it was decentralized in Gujarat and Tamil Nadu.

Post-independence, India started slow but soon accelerated the pace of garment manufacturing. And it all happened due to the liberal policies of the government of India. Starting from setting an independent ministry for the growth and development of the industry to making liberal policies to empower the small-scale enterprises, the government did all. The biggest problem with the sector is competition.

Present

Today the Indian economy is largely dependent on the textile sector in India, which is booming at a fast pace. It brings about 27% of total foreign exchange in the country. Its contribution to industrial production is 14% and its contribution to the GDP is 3%. And around 35 million people are directly employed by the sector. And it is a huge number. It is the second-largest employment generator in the country, and it accommodates both skilled and unskilled labourers.

Future Challenges in Textile Sector

Textile holds a bright future in the country. It is booking at a fast pace, and it has the potential to accommodate the present as well as future demands of the domestic and international markets. Many Indian textile companies export both yarns and finished apparel to the US, Canada, and European markets. And their share in the international market is growing.

Government Policies

It all started with deregulation in 1985 and it continues till today. The present government has ambitious plans to boost the sector so it generates more employment, increases its share of the GDP, and brings more foreign exchange with export. The government is supporting small-scale yarn manufacturers in India so they can compete with the global players.

India’s textile sector is comprised of most small-scale and non-integrated enterprises that do all kinds of jobs including weaving, spinning, and finishing apparel making. And these small-scale enterprises require government support to grow and expand their businesses to international markets. The government is ready to provide support to small-scale enterprises with liberal policies.

Future of Textile Industry in India

The textile industry in India is playing a crucial role in the country’s GDP by providing direct employment to people. It is increasing exports to bring more foreign exchange. Today India is the third-largest producer of cotton in the world.