Union Minister for Commerce and Industry Suresh Prabhu today called for major focus on substantially increasing contribution of foreign trade to India’s GDP, as part of the country’s policy initiatives on increasing its Import-Export ratio. The Minister highlighted this in a message to the four export promotion councils – PLEXCONCIL, CHEMEXIL, CAPEXIL & SHEFEXIL – during their countdown meet in Mumbai today for the three-day CAPINDIA event beginning March 22.
CAPINDIA’s 3rd edition, under the Central Government’s — Department of Commerce and supported by the Department of Chemicals and Petrochemicals but organized jointly by the four Councils — is one of the largest sourcing and networking events for the chemicals, plastics, construction & mining industries and allied products industry in showcasing India’s world-class manufacturing capabilities and capacities.
CAPINDIA will host 400 International buyrs from across the globe who are being invited to attend the Buyer Seller Meets being organized as part of the Government’s MAI Scheme to promote key export segments through platforms that foster closer trade collaboration between Indian manufacturers-exporters and target countries.
“CAPINDIA 2018 is very significant for us as we target to cross the US$ 8 billion mark in 2017-18. Plastics are among the fastest growing industries in India experiencing a double-digit growth rate on an average and the Indian Plastics industry offers immense potential in terms of capacity, infrastructure and skilled manpower,” A K Basak, Chairman, PLEXCONCIL, said in pointing out that India is currently ranked among the top five consumers of polymers in the world and has 30,000+ plastic processing units employing over four million people across the country, even as the current trend in India’s plastic exports appears highly encouraging.
He said that during April 2017 to December 2017, India’s plastics exports witnessed a positive growth of 14.4% to US$ 5.46 billion due to increased exports to Latin America & Caribbean (+42.2%), North-East Asia (+26.0%), European Union (+24.8%), and North America (14.6%). “The growth achieved so far in 2017-18 is significant as we have set ourselves an export target of US$ 8.31 billion for the entire year 2017-18. India’s plastics export to its largest destination – the USA — continues to tread higher and is most likely to cross the coveted US$ 1 billion mark in 2017-18 at the current pace,” he said.
Basak said that as far as India’s foreign trade is concerned, the focus would continue to be on export of value-added plastics from India, which formed 66% of our overall plastics exports of USD 7.56 billion in 2016-17. Describing the global export market for plastics as a huge “Ocean of Opportunities” (US$ 850 billion upwards), he said India’s share in this ocean is quite negligible (less than 1.0%) and — given the immense opportunity presented – the Councils’ members needed to make best use of various export promotion activities such as CAPINDIA made available by the Government through the Council.”
Noting that Plexconcil welcomed the development-oriented Budget 2018-19 presented by the Union Finance Minister, Basak said the Plastics industry predominantly comprised of MSMEs and the Rs 3794 crores allocated in capital support and interest subsidy was sure to help the sector grow while also incentivizing new entrants into the segment and helping grow the industry as a whole. The cut back on Corporate tax to 25% for businesses with turnover of upto Rs. 250 crores is also a welcome reprieve for many of the Councils’ manufacturers, who will now be able to utilize funds thus saved to reinvest in their own businesses and improve manufacturing capacities to meet the increasing demand in international markets, he added.
“We are presently exporting products worth Rs 178 crores, despite problems,” Satish Wagh, Chairman, CHEMEXCIL, said, while highlighting CHEMEXCIL’s panel-wise exports as US$ 12.15 billion in 2016-17. “In April-December 2017-18, we have already posted 29.82% y-o-y growth with exports of US$ 11.31 billion. India’s chemicals industry — with a market size of US$ 145 billion — is the seventh largest producer of chemicals worldwide and the third largest producer in Asia after China and Japan. India is the third largest producer of agro chemicals globally and exports 50% of its production. Specialty chemicals market has been growing at 14% over the last five years due to domestic consumption and the market size is expected to touch US$ 70 billion by 2020,” he said.
“It is a capital intensive industry which employs approx. 2 million people in India. CAPINDIA will help us tap immense opportunities for growth, which exist in the fields of specialty chemicals, polymers and agrochemicals industries as the ‘Make in India’ initiative further facilitates growth and investment,” Wagh added.
“Slated to be one of India’s largest global sourcing shows for products in our business. CAPINDIA 2018 will be significant in being the first mega industry event following Union Budget FY2019 and the implementation of GST, which will have a significant bearing on targeted exports in sync with the Government’s vision for Year 2022,” said R. Veeramani, President, CAPEXIL. “The export target fixed for CAPEXIL products is US$ 16.45 billion for 2017-18, which marks a 9.6% growth in exports — compared to US$ 15.01 bn in 2016-17. The construction and mining sectors are responsible for propelling India’s overall development. Panel-wise exports for CAPEXIL touched US$ 14.518 billion in April 2017 to January 2018 — showing a growth of over 19%, compared to corresponding last year’s figures of US$ 12.16 billion. Exports of Construction & Mining products is significant and shows potential for growth,” he said, adding that the event will see participation from all major industries and sectors including Granite, Natural Stone, Marble, Minerals and Ores, Paints, Coating, Glassware, Furniture, Ceramic, Sanitary ware, Cement, Clinkers, Asbestos, Paper, Paper board, Stationary products, book Publishers and Printers.
S. K. Ghosh, Chairman, Shellac and Forest Products Export Promotion Council (SHEFEXIL), said, “India’s export of SHEFEXIL products was US$ 171.51 million during December 2017 — as against US$ 143.04 million during December 2016 – in registering positive growth of 19.9%. Cumulative SHEFEXIL product exports during April – December 2017 also recorded a growth of 23.73% over the same period last year, by securing exports of US$ 1341.9million — as against US$ 1084.52million during April – December 2016. Comparing with November 2017, export of SHFEXIL products in December 2017 increased by 14.82% in terms of value. In value terms, during December 2017, export of Fixed Vegetable Oil Cake and Others, Guar Gum, Plant and Plant Portion, Vegetable Saps & Extracts grew positively, whereas export of Other Vegetable Material and Shellac & Lac Based Products declined, as compared to exports made during December 2016.”
