The Indian plastics industry is comfortably poised and has been growing at a steady pace despite challenging economic conditions. Over the years, the usage of plastic has gained prominence in multiple sectors across India, right from automotive to infrastructure. As a result, the Indian polymer industry has received a tremendous boost, which has laid the foundation for more fast paced development of this industry in the future. Let’s take a look at the key drivers of growth which have and will contribute to the development of the Indian plastics industry.
Growth of packaging industry
- The evolution of the polymer packaging industry has brought about a revolution of sorts, with more than 60% of the polymer consumption in India being concentrated in the packaging applications sector. The key segments contributing to the growth in this sector are FMCG items, food/processed food, and cosmetics.
- Another huge driving force behind the booming Indian plastics sector is the automobile industry. It is well known that plastic plays a pivotal role in the manufacturing of automobiles. Hence, with the rising income levels of the middle-class segment, India is seeing a never seen before surge in the demand for automobiles.
- With a year-on-year growth of around 15%, this segment is also a key contributor to the growth of the plastics industry in India. There have a number of key developments that have led to increased demand for polymers in this sector, which include access to power in rural areas, increased spending power, and faster replacement cycles.
- With India having emerged as a hub for medical tourism, there is a bigger demand for polymer based products like syringes, implants, fluid bottles, disposable wears and medical equipment. Better quality of living has also increased the demand for sanitary products and baby care products, which in return has upped the demand for polymers.
- Defined as the usage of plastics in plant and animal agriculture, plasticulture today is a multi-billion dollar industry worldwide. It is an emerging sector in India and the key factors driving demand for polymers in this industry are green houses, crop/fruit covers, and drip irrigation. These are further creating demand for polymer based products like pipes, storage tanks, PE films, etc.
- In a developing country like India, infrastructure has a very important role to play in building the nation. From the construction of highways to rural electrification projects to residential/non-residential construction, polymer-based products are needed everywhere.
Per the current forecasts, the plastics industry in India will grow by leaps and bounds. Multiple factors will contribute to its growth, as it races towards 10MnMT in less than a decade.