India’s plastics exports down 3.5% on global economic conditions and geopolitical tensions; expert calls for reforms to make the sector self-sustaining

The decline was due to muted global economic conditions, restrictive trade policies, and geopolitical tensions affecting international trade.

The figure for March 2024 represented a 5.6% growth over exports of $1.05 billion in March 2023.

The cumulative value of all of India’s merchandise exports during April 2023 to March 2024 stood at $437.1 billion, a decline of 3.1% compared with $451.1 billion during the same period last year, on account of unfavourable global economic conditions, trade policies, and geopolitical tensions affecting international trade.

India’s plastic industry experienced a significant surge in exports from December 2023 to March 2024, indicating positive growth despite fluctuating global economic conditions, said Sribash Dasmohapatra, who is executive director of the Plastics Export Promotion Council (Plexconcil), a body under the commerce ministry.

That surge reflects not only the resilience of the Indian plastics sector but also the diverse export portfolio, spanning raw materials, packaging, and consumer products, Dasmohapatra said.

“India’s plastics and linoleum industry faces significant challenges as it struggles to recover from a decline in exports.

In fiscal year 2024, exports amounted to $8.08 billion, falling short of the $8.6 billion recorded in 2019. The imbalance is further compounded by the fact that imports are approximately three times the value of exports, highlighting the industry’s heavy reliance on imported raw materials,” said Ajay Srivastava, the founder of Global Trade Research Initiative (GTRI).

“This dependence underscores the urgent need for substantial investments and reforms aimed at making the sector more self-sustaining and less vulnerable to external supply shocks,” Srivastava said.