Exports of plastics fall as demand slows

India’s plastics exports fell 3.5% to $11.55 billion in FY24 from $11.96 billion in FY23, despite registering a positive year-on-year growth of 5.6% in March 2024 to $1.11 billion, according to commerce ministry data analyzed by Mint.

The decline was due to muted global demand, restrictive trade policies, and geopolitical tensions affecting international trade.

The figure for March 2024 represented a 5.6% growth over exports of $1.05 billion in March 2023.

To be sure, the cumulative value of all of India's merchandise exports during April 2023 to March 2024 stood at $437.1 billion, a decline of 3.1% compared with $451.1 billion during the same period last year, on account of unfavourable global economic conditions, trade policies, and geopolitical tensions affecting international trade.

Overall, while the plastic and made-up fishing nets sectors have shown resilience and growth, the decline in the cumulative value of merchandise exports highlights the larger challenges faced by India's export sector. It underscores the need for continuous efforts to boost exports and navigate the evolving global trade landscape, experts said.

In March last year, most plastic products reported a negative growth in exports.

These included films and sheets, FIBC (flexible intermediate bulk container), woven sacks, woven fabrics, tarpaulin; floor coverings, leathercloth and laminates, plastic pipes & fittings; fibreglass reinforced plastic (FRP) and composites, etc. had reported higher exports while consumer and houseware products, and writing instruments.

Export figure for March 2024 had represented a 5.6% growth over exports of $1.05 billion in March 2023