Key Initiatives by Ministry of Commerce & Industry for Promotion of Export of Plastic and Articles thereof.

[YAGAY andSUN]

The Ministry of Commerce & Industry in India plays a key role in the promotion of plastics exports by formulating policies, providing incentives, facilitating trade, and creating a conducive environment for the sector’s growth. Specifically, the Department of Commerce under the Ministry of Commerce supports the export of plastics through various mechanisms, both at the policy and operational levels. Here’s how the Ministry contributes to promoting plastics exports:

Key Initiatives by the Ministry of Commerce to Promote Plastic Exports

1. Export Promotion Councils (EPCs):
   • The Ministry supports various Export Promotion Councils, one of the most prominent being the Plastics Export Promotion Council (PLEXCONCIL). This council works closely with the Ministry to enhance the competitiveness of India’s plastic industry on the global stage by providing various services, including:
     • Market development and trade promotion activities.
     • Organizing trade fairs, exhibitions, and buyer-seller meets.
     • Providing information on international markets and buyer trends.
     • Assisting exporters with trade financing and export documentation.
2. Implementation of the Foreign Trade Policy (FTP):
   • The Foreign Trade Policy (FTP), which is issued every five years, outlines the government’s export and import strategies, including the promotion of specific sectors such as plastics. Through this policy, the Ministry ensures that the plastic sector benefits from:
     • Duty exemptions and reductions on raw material imports under schemes like Advance Authorization and EPCG.
     • Incentives such as RODTEP (Remission of Duties and Taxes on Export Products), to refund taxes on exported plastics and reduce the cost burden for exporters.
3. Trade Agreements and Partnerships:
   • The Ministry negotiates and implements Free Trade Agreements (FTAs) and Comprehensive Economic Partnerships with various countries and trading blocs. These agreements can reduce tariffs and non-tariff barriers, providing Indian plastic exporters with easier access to international markets.
   • The Ministry encourages businesses to explore export opportunities under existing or new FTAs, such as agreements with countries in the European Union, ASEAN, and Middle Eastern nations.
4. Incentive Schemes:
   • The Ministry, through various initiatives, provides export incentives for plastic manufacturers. These include:
     • Merchandise Exports from India Scheme (MEIS): Encourages plastic manufacturers to export by offering rewards on the export of certain goods.
     • Transport and Infrastructure Benefits: Subsidies and assistance for logistics, which can be critical for timely export deliveries, reducing the cost burden on exporters.
     • Duty Drawback: Refund of excise duties paid on raw materials used in the manufacturing of plastic products meant for export.
5. Promoting “Make in India” and Atmanirbhar Bharat:
   • The Ministry of Commerce Supports Make in India initiatives that emphasize self-reliance and export of high-quality plastic products. The goal is to help manufacturers in India produce world-class products by promoting local manufacturing while expanding their export footprint.
   • Atmanirbhar Bharat aims to reduce dependency on imports, encouraging domestic production of plastic products and their components, which are then exported globally.
6. Skill Development and Technology Upgradation:
   • Through the Skill Development Initiatives, the Ministry works with industry bodies to enhance the technical know-how and skills of the workforce in the plastic sector. This improves production efficiency and helps in meeting global quality standards.
   • The Technology Upgradation Fund Scheme (TUFS) and other similar initiatives help businesses in the plastic sector modernize their machinery, thereby improving the overall competitiveness of Indian plastic products in global markets.
7. Market Intelligence and Research:
   • The Ministry provides market intelligence services to plastic exporters through organizations such as the Export Promotion Council. This helps businesses understand the demand trends, market regulations, and requirements of different importing countries. It also keeps them updated on international certification standards, environmental regulations, and trade barriers that may impact exports.
8. Trade Facilitation and Simplification of Procedures:
   • The Ministry works on simplifying and digitizing export procedures through the Directorate General of Foreign Trade (DGFT), making it easier for exporters of plastics to access government schemes, process documentation, and clearances for shipments. This includes reducing paperwork and implementing e-governance tools to improve operational efficiency.
9. Financial Assistance and Support for Exporters:
   • The Ministry of Commerce provides financial support to export-oriented plastic businesses by facilitating easy access to export financing and credit insurance through organizations like the Export Credit Guarantee Corporation (ECGC). This helps mitigate the risks involved in cross-border transactions, especially when dealing with new markets or buyers.
10. Environmental Compliance and Sustainable Practices:

• The Ministry promotes sustainability in the plastics industry by encouraging exporters to adopt eco-friendly production practices and meet international environmental standards. The government supports recycling and green plastic initiatives by introducing policies that help Indian exporters meet global environmental standards.
• Exporters are also encouraged to comply with the Plastic Waste Management Rules, which have been made more stringent in many markets, including the European Union and North America.

Steps Taken to Overcome Challenges

• Global Marketing and Promotion: The Ministry facilitates Indian plastic businesses to explore new markets through trade missions, buyer-seller meets, and by promoting India’s plastic exports in international trade fairs.
• Reduction of Non-Tariff Barriers: The Ministry advocates for India’s interests in international trade negotiations, helping to reduce non-tariff barriers (such as technical barriers to trade) that hinder the flow of plastics across borders.
• Facilitating Innovation and R&D: In collaboration with industry bodies, the Ministry fosters research and development in the plastics sector, focusing on product innovations such as biodegradable plastics, recyclable materials, and sustainable packaging solutions. This improves the competitiveness of Indian plastic products in an increasingly eco-conscious global market.

Conclusion

The Ministry of Commerce & Industry in India plays a vital role in promoting the export of plastics by providing a supportive policy framework, offering financial and technical incentives, facilitating market access, and improving the competitiveness of the sector globally. The collective efforts between the government, industry stakeholders, and trade bodies aim to strengthen India's position as a leading exporter of plastics while addressing challenges related to environmental sustainability, trade barriers, and market access.