Mr.Bipin Shah, Chairman-International Business
Relations Committee, PlastIndia Foundation and member of plastemart.com's
advisory board, made a very informative presentation called "India
- the emerging opportunities in India in the Plastics Processing
Industry", at Singapore in March 2002. Given below is the extract
of his presentation.
India is one of the oldest civilizations, with
a population of over one billion (17% of the World Population).
India has consistently shown a GDP growth of more than 6%since the
introduction of economic reforms in 1991. During this period, plastic
consumption has grown from just about one million tonnes to almost
3.4 million tonnes in 2000, showing an average growth of almost
The healthy demand elasticity of 2.25xGDP
Growth is an indicator of the inherent potential of plastics
in Indias projected future for the next decade, in which the
economy is likely to show a consistent growth of about 6%, if not
better. The consuming population level is expected to reach more
than 0.5 billion people from approximately 0.175 billion in 2000.
This increase in demand of the consuming population is as big as
that of USA or Western Europe. The second highest World GDP growth
shown by India during the last 10 years will definitely continue
in the coming decade. A healthy economic growth will fuel the demand
of plastics. The expected demand at the optimistic level of 13.5-14%
from 2000 to 2010 will reach a level of 12.5 million tonnes. This
will make India as the third largest plastics consuming country
in the World by 2010 from it's tenth position in 2000.
Indian plastic processing industry is characterised
by a very wide fragmentation with an average consumption level of
about 150 tonnes/unit. The fragmented industry with a processing
capacity of 10 million, is presently operating at not more than
45-50% level. To meet the growth potential of plastics, the industry
needs to develop an increased capacity on one side. But on the other
side, it needs to develop the most economic production capacity
with better efficiency and automation to remain competitive in the
face of global competition.
India definitely offers an ample opportunity to
the globally leading converters to tap the potential of a huge consumption
increase of almost 8-9 million tonnes in the next decade. India
can be used as a global sourcing point for plastics products in
several sectors like automobiles, electronics, packaging, etc. The
joint ventures in India would help the global players to participate
more actively in the buoyant and vibrant growth of plastics in India.
The complete presentation can be viewed by clicking