The Indian Government is to review the policy on imported plastic scrap. This is likely to soften prices for manufacturers of commonly-used plastic articles, due to greater availability of a raw material alternative. This will help plastic processing industry to develop and to compete with Chinese products in the world market.
Currently the government now does not allow import of plastic scrap except for the units in SEZs, which are allowed to import them for export production. The restriction is primarily due to the concern that India may become a dumping ground for plastic waste if imports are allowed freely.
The petrochemicals policy recently approved by the Cabinet, makes a strong case for reviewing this sensitive issue by the ministry of chemicals and fertilisers, the ministry of environment and forests and the ministry of commerce.