AIPMA Seeks PLI Scheme For Plastic Industry To Substitute Rs 37,500 Crore Worth Of Imports

New Delhi, Sept 1 (KNN) The All India Plastic Manufacturers Association (AIPMA) has urged the government to introduce a PLI scheme for the plastic processing sector and a higher import duty on finished products in a bid to substitute Rs 37,500 crore worth of imports.

 "We have asked for a PLI scheme for the plastic processing sector so that domestic manufacturers can expand operations to facilitate Rs 37,500 crore of import substitution," said Arvind Mehta, chairman AIPMA governing council.

AIPMA, in a study commissioned one and a half years ago, has identified 553 plastic products that are being imported in large quantities and with high value in India between tariff lines with HSN codes 3916 to 3926.

These include tubes, pipes, hoses, plates, sheets, films, articles for packaging, household articles, tableware, and kitchenware, among others. The value of imports under these HSN (harmonised system of nomenclature) codes shot up from Rs 28,000 crore in the financial year 2019 to Rs 37,500 crore in the financial year 2021.

As per reports, the replacement of Rs 37,500 crore would lead to additional in-house consumption of 4 million tonnes of raw material, the setting up of 16,000 plastic processing machines, and the additional employment of 3 lakh persons.

As the government explores the possibility of implementing a PLI scheme for the chemicals sector, there is optimism within the industry that the processing sector may also be taken into account.  (KNN Bureau)