Market Reports

Plastic Industry in India

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Quick Facts: India’s Plastic Industry

  • As of 2023, the Indian plastic processing industry comprised ~30,000 units using injection moulding, blow moulding, extrusion, and calendaring to create a wide range of products.
  • The plastics industry was home to about 50,000 industries as of 2023, most of which are micro, small, and medium-sized enterprises (MSMEs). These enterprises contribute INR 3,633 billion to India’s economy and employ more than 50,000 people.
  • The plastic industry in India market size is estimated at INR 3,938 billion in 2024 and is expected to reach INR 4,466 billion by 2029, growing at a CAGR of over 6.5% during the forecast period (2024-2029).
  • As of 2023-24, the Share of India’s plastic products industry is 0.5% of India’s GDP.
  • An Indian uses 13 kg of plastic annually versus 27 kg globally.
  • Plastic consumption in India has increased 23 times since 1957 when polystyrene was first produced in India, reaching about 22 million tons.
  • The consumption of plastics in India has significant regional variation, with Western India accounting for 47%, Northern India for 23%, and Southern India for 21%. The remaining 9% is consumed in Eastern India.
  • India accounts for about 6% of global plastic use and is the third-largest consumer of the material after China and the US.
  • The market for recycling waste plastic in India reached 9.9 million tons in 2023.
  • India recycles plastic at a rate of 60%, which is higher than that of developed nations.
  • The ‘Make in India’, ‘Skill India’, ‘Swachh Bharat’, and ‘Digital India’ initiatives of the government are increasing plastic production, and by 2027, it is expected that the plastics industry will generate INR 10,382 billion in annual revenue, with two lakh tons of exports.
  • There are 4,953 registered plastic manufacturing/recycling units engaged in plastic activities in 30 states/Union territories of India and 823 non-registered plastic manufacturing/recycling units in 9 states/UTs.
  • Leading global investors have invested INR 65,388 million in the plastics circularity industry in India across 199 deals from 2018-2023.

Overview of Indian Plastic Industry

The Indian plastic industry is one of the fastest-growing sectors in the country, driven by increasing demand across industries such as packaging, automotive, construction, and consumer goods. Valued at INR 3,697 billion in 2023, the market is projected to grow at a compound annual growth rate (CAGR) of 6.6% from 2024 to 2030, reaching INR 5,784 billion by 2030. This growth is fuelled by the increasing population and urbanization, which has significantly boosted plastic consumption, presenting both economic opportunities and environmental challenges. The industry is under increasing pressure to adopt sustainable practices, including recycling and reducing plastic waste, while benefiting from government initiatives aimed at enhancing manufacturing and exports. 

Plastic Recycling Types

  • Not all plastics are the same, and the recycling symbol on plastic containers, marked with an SPI code, provides valuable information about the safety and biodegradability of each type.
  • PET (Polyethylene Terephthalate), found in beverage bottles and food containers, is generally safe but can absorb odours and leach chemicals like Antimony when exposed to heat. It is easily recyclable and repurposed into products like carpets and winter garment fibers.
  • HDPE (High-Density Polyethylene), the most commonly recycled plastic, is durable, FDA-approved for food contact, and used in items like milk jugs and pipes. Recycled HDPE is made into products like picnic tables and plastic lumber.
  • PVC (Polyvinyl Chloride), or vinyl, is rarely recycled and can contain harmful chemicals, making it unsafe for food contact. It’s used in pipes, credit cards, and medical equipment, and recycled into flooring and gutters.
  • LDPE (Low-Density Polyethylene) is safe and used in bags, plastic wraps, and bottles, but recycling is still challenging. Recycled LDPE is used in garbage cans and bubble wrap.
  • PP (Polypropylene) is durable, heat-resistant, and found in tupperware, car parts, and yogurt containers. It is recyclable and often reused for heavy-duty items like pallets and rakes.
  • PS (Polystyrene), also known as Styrofoam, is cheap but hazardous when heated and poorly recyclable. It’s commonly used in disposable products but is typically thrown away, though it can be recycled into school supplies and insulation.
  • Miscellaneous plastics (SPI code 7) include items made from plastics like BPA-containing materials, which are toxic and difficult to recycle, typically repurposed into plastic lumber. 

Regulatory Landscape

  • To safeguard public health and the environment, the Ministry of Environment Forest and Climate Change (MoEFCC) introduced the Plastic Waste Management Rules, in 2016. These rules replaced the Plastic Waste (Management and Handling) Rules, 2011, and apply to all waste generators, recyclers, manufacturers, importers, producers, distributors, sellers, and users of plastic bags, plastic sheets, covers made of plastic, and multilayered packaging.
  • India introduced its first plastic management policy in 1999 with the Plastics Manufacture, Sale, and Usage Rules, limiting the use of plastic bags thinner than 20 microns.
  • The Plastic Waste Management Rules of 2016 expanded to include rural areas and introduced Extended Producer Responsibility (EPR), making producers, importers, and brand owners responsible for collecting plastic waste from their products. EPR shifts the responsibility for waste management to the producers rather than the government.
  • Producers, manufacturers, and recyclers of plastic carry bags, or multilayered packaging must obtain a registration certificate from the State Pollution Control Board or the Pollution Control Committee of the Union Territory, as applicable, before starting production.
  • The Plastics Export Promotion Council (PLEXCOUNCIL) was established in 1955 by the Ministry of Commerce and Industry as a non-profit organization. Its primary aim is to position India as a trusted supplier of high-quality plastic products. Serving as the apex body for the plastic industry in India, it represents over 2,500 exporters involved in the production and trade of a wide range of plastic goods, including raw materials, semi-finished, and finished products.
  • Effective July 1, 2022, India prohibited the manufacture, distribution, storage, sale, and use of 19 specific single-use plastic items. The ban included items such as plastic cutlery, straws, sticks, and thermocol (used solely for decorative purposes). Additionally, certain single-use plastic items like carry bags and banners were regulated based on thickness, with carry bags limited to 120 microns and banners to 100 microns. 

Plastic Recycling and Government Initiatives

  • In February 2022, India released updated EPR guidelines for plastic packaging to strengthen existing rules. The guidelines promote a circular economy by encouraging the use of sustainable packaging that is reusable, recyclable, or compostable. The guidelines also require the use of recycled plastic content in packaging, supporting investments in recycling infrastructure.
  • Along with the ban on selected single-use plastics announced in August 2021, the new EPR guidelines aim to improve the collection and management of plastic waste in India.
  • In 2023, India’s waste plastic recycling market reached 9.9 million tons, with expectations grow to 23.7 million tons by 2032, driven by a CAGR of 9.8% from 2024 to 2032. Key factors fuelling this growth include increased use of recycled plastics in packaging, a shift towards sustainable living, and government initiatives supporting plastic recycling. Public awareness of plastic’s environmental impact and government actions, such as the plastic waste management (PWM) initiatives, single-use plastic bans, and the Waste to Wealth Mission, are also significant contributors. Amendments to the Plastic Waste Management Rules and Extended Producer Responsibility (EPR) guidelines aim to boost the use of recycled content and promote circular economy practices. India’s participation in global partnerships, including the launch of the Plastics Pact in 2021, further supports its recycling goals, aiming to make all plastic packaging reusable or recyclable by 2030.
  • The government has initiated a program to establish Centres of Excellence (CoEs) aimed at advancing existing petrochemical technologies and fostering research in the sector. This initiative will support the development of innovative applications for polymers and plastics in India. Furthermore, 23 Central Institutes of Plastics Engineering & Technology (CIPET) have been approved to enhance financial and technological collaboration, thereby promoting skill development in the chemicals and petrochemical industries.

Initiatives by Different States

Operation Blue Mountain in Nilgiris, Tamil Nadu:
  • In 2001, Supriya Sahu, the District Collector of Nilgiri, led the Operation Blue Mountain campaign to ban plastic use in the district. This initiative was critical in addressing the growing issue of plastic pollution, which was clogging river sources and springs in the Nilgiris, a popular hill station. The campaign garnered significant recognition, with the former Planning Commission and UNDP documenting it as a best practice in governance from Indian states. To raise awareness, the campaign used impactful images of choking animals and highlighted how plastic waste blocks drains and contaminates water bodies, including lakes.

Sikkim: First State to Ban Plastics Bottles & Disposable Foam Products
  • Sikkim, known for its cleanliness, took significant steps to reduce its carbon footprint by banning plastic water bottles and disposable foam products in government meetings and across the state. The ban was implemented to curb the environmental hazards posed by these items, which contributed to landfill waste. In place of plastic bottles, the government encouraged the use of filtered water, large reusable dispensers, and reusable bottles.

Maharashtra- Ban on Plastics
  • Maharashtra has revised its single-use plastic ban, permitting products made from compostable materials and plastic packaging with a thickness below 50 microns under certain conditions. Starting December 31, 2022, plastic carry bags must have a minimum thickness of 120 microns for reuse, while bags under 75 microns remain banned nationwide. The state has partially rolled back its 2018 ban on specific plastic items, aligning with the federal government’s plastic ban. The revised policy now allows the production and use of single-use disposable plastic items like straws, cups, plates, glasses, forks, spoons, and containers made from compostable plastic materials.

Himachal Pradesh-Sustainable Plastic Waste Management Plan
  • The Himachal Pradesh government passed the Himachal Pradesh Non-Biodegradable Garbage (Control) Act in 1995 to address the growing issue of plastic and non-biodegradable waste. This legislation aimed to promote scientific disposal methods and banned the use of coloured plastic carry bags made from recycled plastic. In 2009, the government introduced the Sustainable Plastic Waste Management Plan, which focuses on controlling plastic use and developing systematic disposal solutions. As part of its Clean Himachal and Healthy Himachal drive, the state prohibited plastic cups and plates in 2011, launched awareness campaigns to highlight the harmful effects of plastic waste, and encouraged citizens to reduce plastic consumption.

Uttar Pradesh: Tidy Trails
  • The Tidy Trails initiative, launched in Mathura-Vrindavan in September 2021, aimed to inspire residents to maintain a clean environment by collecting 25,000 kg of plastic waste from 800 establishments across the city. Engaging 6.2 lakh people through awareness campaigns, events, and competitions, it focused on promoting responsible plastic waste management. After its success in Mathura-Vrindavan, Tidy Trails was introduced in Agra to manage post-consumer plastic waste sustainably with support from Agra Nagar Nigam. Aligned with the ‘Swachhta Hi Seva’ campaign, the program aims to involve over 500 shops, recycling plastic waste into benches and chairs for distribution across the city.

Innovative Approaches to Address Plastic Pollution

  • Uflex Limited is developing a biodegradable and recyclable packaging solution that will transform uncollected plastic and laminate waste into biomass through degradation. As the global focus shifts towards sustainability, these innovative bio-based and biodegradable packaging materials are poised to shape a profitable future in flexible packaging.
  • Banyan Nation collects post-consumer plastic waste, processes it into high-quality recycled resins, and supplies these resins to manufacturers who use them to produce new products. This closed-loop system prevents plastic from ending up in landfills or polluting the environment, reducing the need for virgin plastics.
  • Saahas Zero Waste collects dry waste, including all types of plastic, from client locations and transports it to an on-site facility for semi-sorting. The semi-sorted waste is then sent to a Materials Recovery Facility for further sorting into categories like PET, MLP, HDPE, LDPE, and others. Each type is compacted into bales and transported to authorized recycling units or cement kilns, which use low-grade plastic waste as fuel.
  • TGP Bioplastics offers affordable, low-GHG bioplastic granules made from corn starch for eco-friendly packaging’s like carry bags, garbage bags, and e-commerce packaging. These compostable materials are durable, perform like conventional plastics, reduce carbon emissions by up to 40%, cut costs by 5-20%, and increase plant-based content by 40-50%. Approved by the Government of India and tested for toxicity, TGP’s bioplastics are a sustainable alternative to traditional plastics.

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