India’s plastics industry is growing at an impressive compound annual growth rate (CAGR) of 15%, with polymer consumption set to reach 10m t in 2012, according to a statement issued by the Plastindia Foundation (Mumbai; www.plastindia.org) on the first day of “K 2010” (www.k-online.de) in Düsseldorf / Germany. That is quite impressive, considering that the country’s economy is growing at a rate of about 9% each year. Speaking to Plasteurope.com, Bipin Shah, Plastindia Foundation vice president, said that if the plastics sector maintains these growth rates, the country will become the world’s third largest consumer of polymers in 2012, after the USA and China.

In 2020, Plastindia predicts, India’s polymer consumption will have reached a whopping 20m t, equal to a per capita consumption of 20 kg. By comparison, the current per capita consumption rate stands at 7.2 kg. For a more detailed overview of India’s plastics industry, see also Plasteurope.com of 17.08.2010.

Growth will be driven by government reform initiatives, the establishment of special plastics processing clusters throughout the country and the setting up of special economic zones (SEZs) to overcome infrastructure bottlenecks and create business-friendly environments. In addition, Plastindia says there are plans to invest some USD 36m in the country’s upstream industry, which it expects to be self-reliant in terms of input by 2010. All in all, 11 more cracker complexes are in the pipeline to cater for the growing demands of India’s plastics processing industry.

The foundation expects the plastics sector to continue to grow at more than 10% a year for several years to come, driven by large investments in and demand from infrastructure, transportation and agriculture, among others.

In the agricultural sector, Indian demand for plastics in irrigation is expected to exceed 2.5m t in 2013. Another highly dynamic sector is packaging, which today accounts for about 50% of India’s plastics consumption, a trend Plastindia believes is likely to continue. Packaging applications currently account for 3.5m t of India’s polymer consumption, a figure expected to rise to 9m t by 2020. Another growth driver is India’s automotive industry, which the Plastindia Foundation says is growing at more than 18% a year. The industry currently is worth an estimated USD 8 bn and all major international automotive players are getting in on the action.

To cater for this increasing demand, the Plastindia Foundation is currently in the midst of establishing a knowledge centre in Dungara, Gujarat, which will provide specialised education and training and carry out plastics R&D. Still in the design stage, the project’s price tag is estimated at some USD 25m.