Plexconcil Report: India's Plastic Export Trends Revealed

The Plastic Export Promotion Council, Plexconcil recently published an in-depth report that thoroughly analyses India's plastic export trends for December 2023 and January 2024. Drawing upon data from the Ministry of Commerce & Industry, Government of India, the study reveals that India recorded merchandise exports amounting to USD 38.5 billion in December 2023, a 1.0% increase from the USD 38.1 billion reported in December 2022, whereas, the merchandise exports of January 2024 stood at USD 36.9, a rise of 3.1% from USD 35.8 billion in January 2023. 

Overview of Overall Plastic Exports

During December 2023, India exported plastics worth USD 1,115 million, an increase of 12.7% from USD 989 million in December 2022. In January 2024, India's plastic exports totaled USD 916 million, showing a 5.0% growth from the USD 873 million recorded in January 2023.

Analysis of Plastics Export Trends

During December 2023, a significant uptick in exports was witnessed across various product categories, including Consumer & houseware products, Plastic films and sheets, Plastic raw materials, FRP & Composites, Floorcoverings, leathercloth & laminates, medical items of plastics, FIBC, Woven sacks, Woven fabrics, Tarpaulin, Plastic pipes & fittings, Packaging items (flexible, rigid), and Human hair & related products. However, some sectors faced challenges in growth, namely Cordage, fishnets & monofilaments; and Writing instruments & stationery.

In January 2024, substantial export expansion was observed across a wide range of product categories, including Plastic films and sheets; Plastic raw materials; FIBC, Woven sacks, Woven fabrics, Tarpaulin; Floorcoverings, leathercloth & laminates; Consumer & houseware products; Packaging items - flexible, rigid; FRP & Composites; Medical items of plastics; Plastic pipes & fittings; and Human hair & related products. However, sectors such as Cordage, fishnets & monofilaments; and Writing instruments & stationery continued to encounter difficulties in achieving growth during the same period.

Chairman of Plexconcil, Mr. Hemant Minocha, expressed, "The export growth in December and January reflects the increasing influence of India's exports on the global economy. The past  two months have given us a clear-cut indicator of the increasing demand from global markets, and we aim to sustain this momentum throughout 2024. Our goal is to achieve USD 25 billion in exports by 2027. Employing a multi-pronged strategy to boost exports, we are focusing on existing markets and exploring opportunities in Latin American countries, the Commonwealth of Independent States (CIS), and Africa."

In December 2023, the Indian export landscape witnessed diverse trends across various product categories. Exports of Consumer & houseware products saw a significant growth of 139.1% in December 2023. This growth was primarily due to higher sales of tableware and kitchenware of plastics; wallets, purses and similar articles; safety headgear and sunglasses. Export of Floor coverings, leather cloth & laminates surged by 19.0% during December 2023 on account of higher sales of PVC floorcoverings (391810); decorative laminates (48239019) and textile fabrics impregnated, coated, covered or laminated with plastics (590390). Export of FRP & Composites demonstrated a remarkable surge, registering a substantial growth of 40.1% during December 2023. This notable increase was due to higher exports of articles of plastics and other materials of heading 3901 to 3914, n.e.s. Medical items of plastics continued to perform well, and its exports were up by 10.8% in December 2023 due to increased sales of contact lenses, spectacles and goggles, and syringes, with or without needles, used in medical, surgical, dental or veterinary sciences. Notably, India reported its highest-ever monthly export of spectacles and goggles in December 2023. In December 2023, the export of Plastic films & sheets was higher by 15.2% because of increased sales of self-adhesive plates and sheets, films and sheets of polymers of ethylene & films and sheets of polyethylene terephthalate.  Export of Plastic pipes & fittings increased by 16.1% due to higher sales of rigid tubes and pipes of polyethylene, rigid tubes and pipes of polymers of vinyl chloride, and fittings like joints, elbows and flanges of plastics for pipes. 

Consumer & houseware products exports experienced a notable growth of 10.9% in January 2024. FIBC, woven sacks, woven fabrics, & tarpaulin exports exhibited a positive growth of 13.2%, driven by increased sales of plastic sacks, bags, and flexible intermediate bulk containers. The export of floor coverings, leather cloth & laminates surged by 25.4% during January 2024, attributed to higher sales of PVC floorcoverings, decorative laminates, and textile fabrics impregnated, coated, covered, or laminated with plastics. India has witnessed a surge in decorative laminate exports to Thailand, the Netherlands, and Spain. FRP & Composites exports demonstrated a remarkable surge, recording a significant growth of 12.1% in January 2024. Human hair & related products exports increased by 44.6% in January 2024 due to higher sales of human hair, dressed, thinned, and bleached to China.

Mr. Sribash Dasmohapatra, Executive Director of Plexconcil, remarked, "The primary purchasers of Indian plastic products are the US, Europe, and the UAE. However, recognizing the potential in Latin America, CIS, and Africa, Plexconcil has been organising buyer-seller and reverse buyer-seller meetings as well as dedicated meetings with plastics associations with the support of Indian embassies and high commissions to promote India as the right sourcing hub for plastics. In a pioneering move, Plexconcil led a delegation to RUPLASTICA, Moscow, Russia at the end of January 2024 to explore a market that imports plastics worth USD 14 billion each year. Despite our limited regional presence, we see opportunities even in turmoil." Mr. Mohapatra added, "The free trade agreements (FTAs) established by the government with especially the UAE will be very beneficial for exports. Nevertheless, the plastics industry eagerly anticipates FTAs with the European Union and the United Kingdom as well as other countries on the whole."