In a recent engagement with government representatives, plastic manufacturers have expressed their desire for enhanced export promotion schemes specifically tailored for Micro, Small, Medium Enterprises (MSMEs) within the plastics industry. They have also advocated for a 25% allocation of all available industrial corridor land at discounted rates to be dedicated to MSMEs. Furthermore, the industry has requested world-class infrastructure under the Public Private Partnership model, which is inclusive of physical and knowledge infrastructure, incubation centres, e-platforms, B2B accessibility, and technology and innovation support for MSMEs.
Industry Appeals to Government
The plastic industry presented several demands to the government. Key among these is a call for easier lending to MSMEs. Additionally, they demanded direct tax exemption on both export income and income generated from indigenisation, either directly or indirectly. This tax exemption would also extend to import substitution, proposed to last a period of five years. Finally, the industry is seeking the removal of anti-dumping duty on plastic processing machines that aren’t manufactured within India.
Challenges Facing the Plastic Industry
Plastics pose significant environmental challenges, as they have come to constitute a considerable portion of municipal solid waste streams. As polymers derived from crude oil, plastics consist of lengthy carbon chains and require many years to fully decompose.
Inadequate disposal of plastic materials results in groundwater pollution, interference in soil microbial activity, and the release of carcinogenic chemicals into the atmosphere, all of which have deleterious health effects for human populations. The industry also contends with the availability of raw materials like Poly Vinyl Chloride (PVC), Polypropylene (PP), and Polyethylene (PE), whose prices are linked to those of crude oil. Moreover, anti-dumping duties on imported machinery used by plastic processors presents an additional challenge.
Proposed Solutions
The industry has proposed several solutions to these challenges, including the production of bio-plastics – which are synthesized from renewable sources such as biomass – and the promotion of plastic waste management infrastructure across the country.
Fact Sheet
| Challenge | Solution |
|---|---|
| Environmental impact of Plastic Waste | Production of Bio-plastics and improved Plastic Waste Management Infrastructure |
| Taxation on Export Income | Direct Tax Exemption on Export Income |
| Limited Access to Industrial Land | 25% Land Allocation at Discounted Rates for MSMEs |
| Anti-dumping Duty on Imported Machinery | Removal of Anti-dumping Duty on Non-native Plastic Processing Machines |
Conclusion
In light of these challenges and suggested solutions, it is clear that comprehensive reform is required in the plastics industry. This will involve cooperation between industrial players, financial institutions, and governmental agencies, all towards fostering a sustainable future for this sector.