The domestic plastic processing industry has sought the benefit of production-linked incentive scheme and higher import duty on finished products in a bid to substitute Rs 37,500 crore worth of import.
The All India Plastic Manufacturers Association (AIPMA), in a study commissioned one and half years ago, has identified 553 plastic products which are being imported in large quantities and value in India between tariff lines with HSN code 3916 to 3926.
These include tubes, pipes, hoses, plates, sheets, films, articles for packaging, household articles, tableware, kitchenware, among others. The value of import under these HSN (harmonised system of nomenclature) codes had shot up from Rs 28,000 crore in financial year 2019 to Rs 37,500 crore in financial year 2021.
The replacement of Rs 37,500 crore would lead to additional inhouse consumption of 4 million tonnes of raw material, setting up of 16,000 plastic processing machines and additional employment of 3 lakh persons.
With the government looking to come up with a PLI scheme for the chemicals sector, the industry is hopeful that the processing industry will also be considered.
“We have asked for a PLI scheme for the plastic processing sector so that domestic manufacturers can expand operations to facilitate Rs 37,500 crore import substitution,” said Arvind Mehta, chairman AIPMA governing council .