India’s plastics exports recovered in October due to a sudden spurt in pent-up demand despite global economy continued to pose an uncertain future amid escalating war in the Middle East and Russia’s intensified offensive in Ukraine. As a major industrial product, the plastics industry reflects the growth in the country’s economy, albeit with a lag of two to three months.
Data compiled by the Plastics Exports Promotion Council (Plexconcil), under the Ministry of Commerce & Industry, showed, India’s plastics exports registered a growth of 9.4 percent to US$933 million in October 2023, compared to US$852 million reported in the corresponding month last year. The cumulative value of plastics export stood at US$ 6.51 billion from April to October 2023, registering a decline of 10 percent compared to US$7.32 billion reported in the corresponding period of the previous year. The decline was attributed to the weakness in global demand following a 12.5 percent contraction in exports reported in the April-September 2023 period.
A notable surge in exports was observed across almost all sectors in October. A study based on data from the Ministry of Commerce & Industry indicates that plastics exports witnessed a notable surge in October 2023 across almost all of the product panels such as floorcoverings, leather cloth & laminates; FRP & composites; FIBC, woven sacks, woven fabrics, tarpaulin; packaging items – flexible, rigid; cordage, fishnets and monofilaments; medical items of plastics; plastic pipes & fittings; plastic films and sheets; writing instruments and stationery; consumer and houseware products; plastic raw materials and human hair and related products.
Penetrating new markets
Sribash Dasmohapatra, Executive Director, Plexconcil, said, “We are very pleased to see a positive movement in exports of most of the product segments the month of October. We hope that this trend continues into the next few months, and we are able to achieve overall growth despite the dampening performance in the past six months. As part of our efforts to promote Indian plastics exports, the Council recently organized buyer-seller meetings with Central American countries of Guatemala, El Salvador, Honduras and Mexico with the support of the Indian embassies in Guatemala (concurrently accredited to El Salvador and Honduras) and Mexico. Promotional meetings were also held with stakeholders in Costa Rica with support from the Embassy of India in Panama.”
Furthermore, the council had a fruitful meeting with the Embassy of India in Washington DC and active discussions were held regarding making deeper inroads into the American market and reaching out to retail chains such as Walmart, Costco, Target etc who may be interested in sourcing plastic goods from India. “Central America is an emerging market and not only presents immense opportunities for exports, but its strategic location makes it the ideal gateway for North and South American continents. The Council plans to help exporters tap into opportunities in these markets,” said Dasmohapatra.
Exports of cordage, fishnets and monofilaments experienced a significant increase of 17.3 percent in October 2023 due to greater sales of made-up fishing nets of nylon to countries like Chile, Kenya, Sri Lanka and the United Kingdom. In October 2023, the export of FIBC, woven sacks, woven fabrics, and tarpaulin demonstrated a significant positive growth of 20.5 percent due to increased sales of sacks and bags of plastics to certain African countries, and flexible intermediate bulk containers in general. Export of floor coverings, leather cloth and laminates surged by 43.3 percent during October 2023 on account of higher sales of floorcoverings of polyvinyl chloride (PVC) and textile fabrics impregnated, coated, covered or laminated with plastics to the United States of America. The export of decorative laminates also contributed to the growth.
“Export of FRP & composites was up by 33.6 percent on account of higher sales of articles of plastics and other materials. This export sector had faced challenges due to the economic downturn and elevated manufacturing costs in Europe, but it has now rebounded with increased sales. On the other hand, the Council will also be leading one of its largest trade delegations of over 73 participants under the India Pavilion to ArabPlast in UAE in December. We have been keenly monitoring data and identifying countries and regions with high export potential and such initiatives have been designed to extend our industry’s outreach to these strategic markets,” Dasmohapatra added.
Medical plastics exports up
The exports of human hair and related products were up by 49.1 percent in October 2023 due to higher sales of human hair, unworked, whether or not washed or scoured to Myanmar and human hair, dressed, thinned and bleached to China. Medical items of plastics continued to perform well and its exports were up by 15.3 percent in October 2023 due to increase in sales of spectacle lenses – which has contributed immensely to the positive growth in export of this particular panel. India reported its highest-ever monthly export of spectacle lenses in October 2023. Export of miscellaneous products and items fell by 44.1 percent in October 2023 due to lower shipments of optical fibres, optical fibre bundles and cables.
The exports of packaging items (both flexible and rigid export) surged by 18.1 percent on account of higher sales of sacks and bags of plastics, carboys, bottles, flasks and similar articles for the conveyance or packaging of goods made up of plastics and articles for the conveyance or packaging of goods of plastics. India mainly exports packaging items (flexible and rigid) to North America and Europe.
Plastic films and sheets export were higher by 12.1 percent in October 2023 on account of improved sales of self-adhesive tape of plastics, films and sheets of polymers of ethylene, and films and sheets of polyethylene terephthalate. Indian exporters of plastic films and sheets informed that the export market has begun to show signs of improvement since the fag-end of June 2023 quarter, with demand for the BOPP starting to recover. They are, however, concerned about the introduction of new capacities and an expected surge in supply of BOPET films. However, export of Plastic pipes and fittings increased by 14.3 percent due to higher sales of rigid tubes and pipes of polymers of vinyl chloride and fittings like joints, elbows and flanges of plastics for pipes. The stabilisation in PVC prices helped increase the overall offtake.
Interestingly, the exports of plastic raw materials increased by 4 percent in October 2023 due to a rise in sales of polyethylene having a specific gravity of 0.94 or more, linear low density polyethylene and other acrylic polymers. Export of low-density polyethylene from India reported its highest-ever export in as many as two years in October 2023. Export of writing instruments and stationery improved by 7.5 percent in October 2023 due to increase in sales of ball- point pens to Algeria, Kenya, and Thailand.
