Published On:May 14 2016
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Indian plastic manufacturers eye Peru to expand exports.
Indian plastic manufacturers from across sectors, including products, raw materials, equipment and accessories and auxiliary, are exploring business opportunities in one of the Latin America’s fastest growing economies, Peru. As a part of this strategy, nearly 48 leading plastic companies participated in the Expo Plast, which was held from May 3-6, 2016 in the Peruvian capital Lima. The expo serves as the gateway to the plastic industry and related sectors of Peru.
To enhance trade and investment, two important agreements were signed – an MoU between the Organisation of Plastics Processors of India (OPPI) and APPIPLAST (the Peruvian Association of Plastic Industry) and the other between FICCI and the Lima Chamber of Commerce and INCHAM. India and Peru are currently looking to sign a Free Trade Agreement (FTA) to take the bilateral trade from $1.5 billion to $2 billion.
The Expo Plast Peru provided Indian companies an opportunity to explore Peru’s $ 2.5 billion market for plastics and allied products which meets most of its needs through imports. Peru is ranked 42nd globally and 3rd among Latin American countries in terms of ease of doing business. Indian companies can leverage on Peru’s various Free Trade Agreements and alliances which gives easy access to the entire Latin American region and specifically to the Pacific Alliance countries which offer a market of almost 220 million people and contribute almost 60 per cent of Latin America’s global trade.
India has a thriving plastics industry which has expanded at 8 per cent CAGR over the last five years to reach 8.5 million tonne per annum (TPA) and Indian companies have emerged as world class plastic manufacturers serving not just the household consumer durables and packaging sector but also infrastructure, healthcare, agriculture, automobiles and electronic goods.