India established plastic University! A real Indian plastic market

According to reports, the Indian Plastics Industry International University has now accepted applications from plastics, chemical and mechanical Engineers, this year will run a short course, fully operational in 2019.

A memorandum of cooperation was signed between the Indian Plastics Foundation Trade Association and the University of Massachusetts at Lovell, where the US provided advice on courses, infrastructure, industry and technical degrees, together with the establishment of the International University of Plastic industry in India. In addition to engineering courses, the Indian Plastics Industry National University will also set up a modern research and development laboratory to increase the plastic engineering curriculum.

The plastics industry is one of India's key industries, as evidenced by the International University of Plastics. India is one of the fastest growing economies in the world, there is also the demographic dividend and the "New Deal dividend" of the government, which has swollen the Indian market's investment potential, attracting plastic-related companies in various parts of the world, such as Husky, Mighty Barton Phil, Solvay and Koth, to set up factories in India or expand the plant. There are also many well-known plastic machinery companies such as Haitian International Holdings Limited, which is now building a new factory in India, while another new plant can reach 200 hydraulic presses by the end of 2018.

The number of middle class will overtake US and Europe

With about 1.3 billion people, India is one of the world's most populous countries, second only to China, and is expected to overtake China as the world's largest population in 2024. Such a large population, combined with a fast-growing economy, has spawned a large middle class in India.

India's middle class has doubled in eight years, from 300 million in 2004 to 600 million in 2012, according to a new study by the University of Mumbai. By 2027, India's middle class is expected to overtake the middle class in the US, Europe and China as a powerful engine of India's economy.

Average growth rate of 18%, plastic packaging into bright spots

With the increasing use of plastics in various products, the Indian plastics industry has developed into one of the leading industries in the country. According to incomplete statistics, India's plastics industry covers more than 30,000 companies and employs more than 4 million people.

From 2007 to 2011, India's plastics industry grew at an annual rate of 13%, exceeding its gross domestic product. The size of India's plastics industry is expected to reach $25 billion trillion in fiscal 2016-2017. While India's middle class is growing, plastic consumption per capita is only 11kg, and India's plastics industry will continue to grow rapidly.

The packaging industry is the direct beneficiary of rising income levels and lifestyle changes in India. According to the Indian Chamber of Commerce (Federation of Indian Chambers of Commerce & Industry, FICCI) and Tata Strategic Management Group (Tata Strategic Management Group, abbreviation TSMG) The joint report, India's current per capita packaging consumption is lower, only 4.3kg, while the developed countries in Germany per capita packaging consumption has reached 42kg, in contrast, India's packaging market there is still a lot of room for growth.

The report also pointed out that in the next few years, India's plastic packaging industry is expected to increase by 18% a year, in 2020 to reach 73 billion U.S. dollars.

The government policy of giving force

The Indian government is proposing to invest 25 trillion rupees over the next three years to boost infrastructure in India's highways, railways and shipping. These infrastructure require a large number of pipelines, wire and cable, waterproof membrane, wood-plastic composite materials and other products, and plastic is precisely the main raw materials to produce these products.

Other government initiatives such as "Made in India", "Skills India" and "Digital India" have also accelerated the development of the plastics industry. For example, the Digital India plan proposes that in the next 5-10 years, electronic products will be made in India with plastic.

Another development impetus is the tax reform of the commodity and excise tax. India's GST Reform Commission proposed in November 2017 that many plastic products, such as plastic flooring, plastic sheeting, plastics furniture, plastic bottles, plastic bathroom accessories, and other tax rates for goods and excise, will be reduced from 28% to 18%.

The decision was widely supported by India's plastics industry. Rajeev Chitalia, former chairman of India's Plastics Export Promotion Council, said the plastics industry would have a heavy burden if it wanted to achieve its export target of $900 billion trillion by 2022. Small and medium-sized enterprises are the pillar industries of plastics industry. Lower commodity and excise taxes will help SMEs to better operate in India and abroad. ”

According to Plastindia Foundation, India's exports of plastic products are expected to grow from $7.9 billion trillion in 2016, to $15 billion in the next 5 years.

Risk

Despite the rapid economic growth, demographic dividend and the government's "New Deal dividend", India has become a sweet pastry for many Chinese companies to invest. But investment in the Indian market, there are still some uncertainties, such as India's infrastructure construction, including airports, highways, hydropower construction, municipal management and so on are still weak. India's transport network is a huge constraint on its investment climate.

Second, India's legal tax system is complex. There are three fundamental issues that constrain Chinese companies ' investment in India-Land law reform, tax law reform, labour law reform, and if these three are not addressed, the Indian market is difficult to develop. The hidden cost of investment in India is relatively high, accounting for about 5% of the company's production costs, and contains a variety of cumbersome procedures for approval, assessment, land expropriation and all kinds of explicit expenses that make the project work.

                                                                                                                                                  By Lily