The All India Plastics Manufacturers Association (AIPMA) has called upon the government to increase the import duty on finished plastic products to 20 percent in a bid to enhance self-reliance in the industry. Citing their detailed study on the import of plastic goods in the country, the association emphasized the need to reduce the influx of imported plastic goods. AIPMA President Mayur D Shah made the request, urging the government to raise the import duty on plastic finished goods (HS Code 3916 to 3926) from the current 10 percent to 20 percent.
The AIPMA has recognized that a significant volume of finished plastic goods is being imported into India, which has led to concerns regarding the nation’s self-sufficiency in the plastics sector. To address this issue, the association proposes an increase in the import duty to discourage imports and boost domestic manufacturing. By doubling the import duty, the government can create a more favorable environment for local manufacturers to thrive.
Increasing the import duty on finished plastic products is expected to have several benefits for the Indian plastics industry. Firstly, it will serve as a protective measure for domestic manufacturers, safeguarding their interests against cheaper imports that can undermine their competitiveness. With higher import duty, foreign manufacturers will find it less economically viable to export their products to India, creating a level playing field for local producers.
Furthermore, the proposed import duty hike aligns with the government’s vision of achieving self-reliance, or “Atmanirbhar Bharat,” in various sectors, including plastics. By incentivizing domestic production, India can reduce its dependency on imported plastic goods, thereby boosting its own manufacturing capabilities. This move is particularly crucial in the plastic industry, which plays a vital role in several sectors, including packaging, construction, automotive, and consumer goods.
The AIPMA’s call for a higher import duty is also driven by the need to address trade imbalances. The influx of imported plastic goods has resulted in a trade deficit, adversely affecting the Indian economy. By increasing import duties, the government can reduce the trade gap and promote a more balanced trade environment.
Additionally, the AIPMA has urged the government to provide incentives to domestic manufacturers, further strengthening the push for self-reliance. These incentives could include financial support, tax benefits, infrastructure development, and skill enhancement programs for the plastics industry. By offering such incentives, the government can encourage investment in domestic manufacturing, boost production capacities, and promote technological advancements.
The plastic industry is a significant contributor to India’s economy, generating employment opportunities and driving economic growth. By supporting domestic manufacturers and promoting self-reliance, the government can create a favorable ecosystem for the industry’s sustainable development. It is crucial to strike a balance between imports and domestic production to ensure the growth and competitiveness of the Indian plastics sector.
The AIPMA’s request to double the import duty on finished plastic products to 20 percent, along with incentives for domestic manufacturers, aims to strengthen India’s self-reliance in the plastic industry. This move aligns with the government’s vision of promoting domestic manufacturing, reducing trade imbalances, and fostering economic growth. By creating a supportive environment for the plastics sector, India can enhance its manufacturing capabilities, generate employment, and emerge as a global leader in the industry.
