Plastic exports to remain subdued in FY20: Report

Mumbai: Plastic exports are expected to be subdued during this financial year at around $8.2-8.5 billion following the US decision to revoke Generalised System of Preferences (GSP) benefits to Indian goods, according to a report.

India had exported $8 billion worth of plastics during in FY19, making it the 17th largest plastic exporter in the world and exported out of a global market of $600 billion, according to a report by US-based trade finance company Drip Capital.

"The exports were affected due to shocks to the export ecosystem, like the removal of the GSP by the US and increasing global concerns about the environmental impact of plastic. Recently the exports have begun picking up after the Centre announced fiscal measures. Even as the exports are picking up it will remain subdued at $8.2-8.5 billion in FY20," Drip Capital co-founder and co-CEO Pushkar Mukewar said here.

Policy interventions and market diversification offer solutions for exporters and can help the sector achieve stability and regain growth in the long-term, he added.

With Indian stakeholders are targeting plastic exports worth $25 billion by 2024-25, there is a need to tap other lucrative markets.

Several other markets, including Southeast Asia, Africa and Latin America can be tapped and diversifying to these regions would be the best solution for Indian exporters, the report said.

In Southeast Asia Bangladesh, Japan and Malaysia has shown high growth in plastic imports over the years, since China stopped importing plastic waste in 2017.