Plastic industry probable to augment with the plunge in oil prices

Published on July 12, 2017

Domestic consumption of plastic is anticipated to touch 20 million tonnes by 2020, the Indian plastic industry in India has a big growth potential and is probable to reach $73 billion in FY 2020.

Plastic is one of the fastest growing commodities in the world offering great investment opportunities. The per capita consumption is increasing at a fast pace. Change in technology and growing consumerism brings abundant opportunities for the sector.

Recent plunge in crude oil price has helped many companies in this sector, as plastic is derived from by petroleum refining products. If the oil prices will be lower the cost of plastic raw materials used across product manufacturing units to produce finished goods also will be lower.

As the industry prepares for immediate changes like GST implementation, the key expectation from the government is to create a clear and stable policy environment that can facilitate long-term business and investment planning.

As per market players, post GST, share of the unorganized players is estimated to be around 40 per cent, and it is expected that organized players share will increase post GST.

Increase in sale of packaged plastic products through retail and e-commerce modes and growing income levels also will increase demand and supply of petrochemicals in India.

With the commence of Make in India, Skill India, Digital India, Swachh Bharat Abhiyan, India is anticipated to offer huge opportunities in long term for plastic industry, as per market predictors.

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