Top export sector for India

Did you know?

India's imports of plastic materials and resins is growing at a much faster rate than domestic production. So, this is the time for foreign companies to set up plants in India.

Plastic materials and resins
(in US$ million)

Plastic materials and resins	1995	1996	1997*
Total market size	3,835	4,240	4,780
Locally manufactured	2,020	2,180	2,670
Total exports	295	380	400
Total imports	2,110	2,440	2,510
Exchange rate:          US$1 = Rs.	32.75	34.95	35.00
Source: Independent studies *1997 figures are estimates

 

Promising sub-sectors	1997* market size (US$ mn)
Commodity plastic and resin	4,090
Engineering plastics and resins	460
Thermoset	230

Points to be noted:

• The Indian plastics and resin market is growing at 16-20 per cent annually.

• Many domestic manufacturers have been hit by the economic liberalisation initiated in 1991 until when they were operating in a protected market.

• It is unlikely that domestic manufacturers will be able to increase their market share. Only two major petrochemical projects are expected to come up by the year 2000. This means imports will increase.

• Major international companies which have opened representative offices in India include Mobil, Dow Chemical, Dupont and FMC (all US-based).

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