AHMEDABAD: Amid efforts to restrict consumption of single-use plastic in the country, plastic exports from Gujarat surged by 33% to US $3.6 billion (approximately Rs 25,509 crore) in fiscal 2018-19 from US$ 2.7 billion (Rs 19,132 crore considering the dollar value at Rs 70.86) in 2017-18. Gujarat is a leader in plastic exports from India with a lion’s share of 45% in the national exports, says a report by Drip Capital, a US-based fintech company.
Exports of plastics from Gujarat have grown at a compound annual growth rate (CAGR) of 15% over the last four fiscals.
According to the report, 60% of India’s total exports come from Gujarat and Maharashtra, which are followed by Madhya Pradesh, West Bengal and the Union territories of Daman and Diu as well as Dadra and Nagar Haveli.
Gujarat’s constant domination of the country’s plastic exports is driven by multiple factors — lower manufacturing costs, presence of large-scale trading hubs like the Mundra Special Economic Zone (SEZ), and high incentives, to name a few.
“However, other top exporting regions like Maharashtra have seen their growth slow down, leading to fears of stagnation in the sector,” said the report prepared in association with the Plastic Export Promotion Council of India (PLEXCONCIL).
Almost 65% of these exports come from MSMEs, which constitute 90% of all plastic exporters in India. Being the 17th largest plastic exporter in the world, India exported US$8 billion worth plastic goods in the financial year 2019. In the last three years, India’s plastics exports have risen at a CAGR of 11%, and is estimated to reach US $25 billion in trade by fiscal 2025.
Stating that many countries, such as France and China, have banned certain plastic goods entirely and this has necessitated a shift away to other options like recyclable and biodegradable plastics, Pushkar Mukewar, co-founder and co-CEO, Drip Capital, added, “Exporters need to explore these options in greater detail, while also pushing government and other stakeholders to undertake research and policy measures into the sector.”
Source: timesofindia.indiatimes.com