Plastic Products Industry in India: An Analysis Since 1990

Abstract

The downstream plastic processing industry in India is highly fragmented and consists of tiny, small and medium units. Presently there are about 22000 plastic processing units of which about 75% are in the small scale sector. The small scale sector however, accounts for only about 25% of polymer consumption. The industry also consumes recycled plastic, which constitutes about 30% of total consumption.

The structural constraints in plastic processing industry relate to the reservation of articles of plastic for manufacture in small scale sector. While there are no quantitative restrictions on imports, incentives offered to remain small have resulted in several sub-optimal size plants operating with older generation technology. Plastic processed articles which are exported both to the developed and developing countries account for about 1.2% share in the global export market.

Keywords: Plastic, Industry, India,1990, small scale, policy, technology, restrictions

JEL Classification: O14, O21, O38