KOLKATA: The strategy of surviving the global meltdown by pushing value added goods in overseas markets has paid off for plastic goods exporters.
Though the export performance in 2008-09 was not as good as that in the previous year, the wisdom of increasing the share of value added products in total exports has helped the country to post a modest 2.7% growth rate in plastic goods exports in the year against a 10% growth in recession-free FY 2008.
A rough estimate by the Plastics Export Promotion Council (Plexconcil) suggests that plastic goods exports from India touched $3.56 billion in 2008-09. The 2.7% growth over the previous year’s figure of $3.46 billion was driven by value added plastic goods like moulded extruded goods, plastic woven sacks/ fabrics and laminates.
However, Indian plastic goods exports would have been a shade better even in the face of economic slowdown had there been stability and steady supply of polymer from the domestic producers, said Plexconcil chairman Nemish J Sayani. This uncertainty in raw material supplies from domestic sources can be avoided to some extent if the government simplifies or liberalises import of plastic scrap generated in the industry, he added.
Emphasising the point, he further said plastic scrap for manufacturing of items like garbage bags command huge export potential. Import liberalisation of plastic scrap will facilitate tapping an immense potential, which is now being fully exploited by India’s competitors in southeast Asian countries, said Mr Sayani.
Plexconcil hopes that plastic goods exporters could improve their competitiveness in the world market in the first quarter of FY 2009 in the wake of the recent downward revision in polymer prices by domestic producers, which has now brought about a parity between polymer prices in India and that in the global market.
As modernisation, credit availability at cheaper rate and market intelligence play critical role in enhancing exports, Plexconcil has taken up a programme to launch a series of campaigns across the country.
The purpose of the campaigns is to make exporters aware about the importance of taking credit rating from accredited rating agencies, the recently announced incentives under the stimulus packages, various schemes offered by the Export Credit Guarantee Corporation, constant improvement in products and process designs and scope for technology upgradation.
Source : The Economic Times