ASSOCHAM Study Foresees Outstanding Growth to Indian Packaging Industry

SEATTLE (Scrap Monster): The joint study conducted by the Associated Chambers of Commerce and Industry of India (ASSOCHAM) and Ernst & Young (EY) predicts outstanding growth to India’s packaging industry. The industry is predicted to grow at a CAGR of 18% to touch $72.6 billion by FY20.

According to the study, the key factors driving the Indian packaging industry growth are rising population in the country, elevated income levels of citizens and constantly changing lifestyles. The demand for packaged products has witnessed notable improvement in rural areas as well, the study noted.

The country generates 0.025 MT of plastic waste every single day. Out of this, 94% is thermoplastic content, including PET, LDPE, HDPE and PVC, which are recyclable. The remaining 6% are thermoset plastics, which are non-recyclable waste. The country’s total plastic demand across various industry sectors is estimated at around 20 MT. Out of the total demand, nearly 15 MT is met by virgin plastic, whereas recycled plastics constitute only the remaining 5MT of the demand.

In order to promote use of recycled plastics in the manufacturing process, the report proposes levying of tax on usage of virgin plastic materials. In addition, the government could levy an environmental tax from all plastic manufacturers at the start of the year, with a provision to refund proportionately, depending on the actual quantity of plastics recycled by them during the entire year.