Original by Dr. Steve Wong
December 21, 2023
I just visited the Plastivision Exhibition 2023 Mumbai (a plastics exhibition), which is held in India every four years. This event encompassed a wide range of plastic products, manufacturing technologies, machinery, design, raw materials, and recycled materials. The exhibition lasted for five days, spanning over ten exhibition halls. The reported attendance varied, with some sources suggesting two million visitors while others mentioned a possibility of one million. In any case, what I witnessed was a vibrant and bustling scene with a large crowd.
As India is not issuing visas to mainland Chinese, including Hong Kong residents, most Chinese attendees were from Taiwan or overseas Chinese holding foreign passports. Our industry players in Hong Kong complained that bringing politics into business was out of the rules. On the contrary, Indian friends believed that India, now playing a more significant role on the international political stage, has increasing autonomy in many matters and does not need to be overly concerned about others’ opinions.
India’s economy has been steadily advancing in recent years, with an average growth rate of 6%. The highly active market attracts investments and factory setups from many countries. Our Indian customers and suppliers who participated in the exhibition found it fruitful and very satisfactory. Many utilized this platform to identify new suppliers, expand procurement channels, and compare prices and quality. India is actively promoting a circular economy and the use of recycled materials, with some recycled materials priced close to levels of virgin materials, at times even exceeding by fifty per cent. I met two of my Malaysian customers who were exhibiting at this event; they not only sold out their stocks comprising thousands of tons of recycled plastics but also secured additional orders, with prices twenty to thirty per cent higher than their export price to mainland China.
India currently needs more prime and recycled plastic materials, requiring them to be imported from overseas. Virgin materials are imported from Houston, USA. I recalled that in the early 1980s, our company imported a large volume of prime materials from there, as China had large requirements. Initially, the major players in the purchase of petrochemical prime and off grade materials were the Italians, later the Jews, followed by the Taiwanese, Chinese, Vietnamese, and now by the Indians.
The Indian government is known for its proactive approach to legislating and establishing monitoring mechanisms and systems. They regularly amend their laws to adapt to changing times, convene meetings and discussions and conduct research. Doing business with them differs from dealing with the Chinese, and it is essential to understand their culture and customs and to be familiar with their local import regulations.
There are many restrictions on the import of waste materials, especially after taking reference from practices followed by other countries over the years. India wants to avoid becoming a dumping ground for economically developed countries, and many types of waste plastics are not allowed to be imported. There are also various restrictions on raw materials, which must comply with their national standards before they can be imported. It involves a lot of procedures and dealing with government agencies. Companies with relevant experience and connections in this regard can operate more efficiently.