Budget 2025: Plastics manufacturers' body seeks PLI scheme to help scale up global presence
In a meeting with Finance Minister, All-India Plastics Manufacturers' Association (AIPMA) requested zero GST on plastic waste and recycling machinery to boost recycling. They also sought a GST reduction from 18% to 5% on recycled plastic granules' conversion costs and a 20% capital equipment subsidy
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New Delhi: All-India Plastics Manufacturers' Association on Monday urged the government for a production-linked incentive scheme for the sector in the upcoming Budget 2025, to increase India's share in the global plastics market.
In a pre-budget consultation meeting with the Union Finance Minister Nirmala Sitharaman, All-India Plastics Manufacturers' Association (AIPMA) said it has asked the government to reduce GST to 'nil' for plastic waste as well as recycling machinery, to encourage recycling.
Besides, it has also sought lowering of GST to 5 per cent, from 18 per cent, on the conversion cost of recycled plastic granules, and providing a 20 per cent subsidy to purchase capital equipment for recycling, the association said in a statement.
AIPMA Chairman Arvind M Mehta said India has immense potential to scale up its operations and increase its share in the global plastic market. "China's export of plastic finished goods is currently 25 times higher than India's, underscoring the vast opportunities for India to expand its exports of finished plastic products. To achieve this growth, AIPMA is proposing the introduction of Production-Linked Incentives (PLI) to support manufacturers in scaling up operations," he added.
AIPMA also demanded the establishment of a technical upgradation fund for the plastic processing sector with an allocation of Rs 2,500 crore over 5 years on the lines of the textile sector's Technology Upgradation Fund (TUF). It also proposed creation of plug and play facilities that provide ready to use infrastructure to enable MSMEs to start operations seamlessly and scale quickly by reducing financial burden on smaller businesses.
