India's packaging exports are 0.51% of global market - while China are 7.33%

Wednesday 24 November 2010

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Manoj Mehta, president of AIFMP outlines steps that could make India a packaging hub

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The daily life of a citizen in Indian starts and ends with handling a print job in some avataar or the other. According to me, it should have a similar recognition as the IT industry where you have a separate minister for the IT sector.

Today, the Indian print industry has a growth rate of 12.5% per annum. It is poised to achieve 60% growth by 2014.

There is a market for exports of printed materials. In 2009, the global exports of printed materials was valued at $ 69676 million (Rs 327,477 crore). Exports of printed materials from India have increased from Rs 1089.43 cr in 2005-06 to Rs 1,683.68 crore in 2009-10.

At the moment, this is 0.51% of the global market. As compared to the above, exports of printed materials from China amounted to 7.33% of the total global exports. To cater to the export printing market, the Government has to extend its support in areas which are affecting the growth of our industry – and discouraging us to compete in the world market.

A few of AIFMP's proposals to the Government

  • Exports to Nepal and Bhutan should be provided incentives as applicable to other exports and excise duty free exports. This would enable the Indian print industry to receive bulk printing orders from Nepal and Bhutan
  • The DEPB (Duty Entitlement Pass Book) is an export incentive scheme provided to exporters in India.
  • Withdrawal or reduction of rates may hamper the industry; and should not be considered
  • Export-oriented units are eligible to get domestic tariff area (DTA) sale entitlement on exports. Almost all printing units who are engaged in exports are engaged in domestic sales. IT exemption should be extended for export turnover (in convertible foreign exchange)
  • That coated paper and paperboard covered under Chapter 4810 is exempted from payment of customs duty
  • Reducing central excise duty on all cartons, boxes, etc which has been converted from kraft paper covered under Chapter 4819 to 4%. This will bring it on par with the Central Excise Duty levied on paper and paperboard
  • It is requested that Central Excise Duty on all cartons, boxes, cases, bags and other packaging containers of paper and paperboard including ones made out of duplex board to be reduced from 10% to 4%
  • SSI exemption for printing and packaging material printed which has the trade or brand name of their customers and their products

Simultaneously, the AIFMP will hold seminars and workshops. In terms of creating awareness, about the Indian market and the international market. We have R Suresh of S T Reddiar as chairman of International Relations, who is organising a Print Congress at Dubai. Print firms from Asian countries will be able to participate at this Congress and exchange views and knowledge. Capexil will be supporting us.

Manoj Mehta is president of the All India Federation of Master Printers (AIFMP). He heads one of the fastest growing converting firms in India, Utility PrintPack.



The above feature is a part of a special Packaging Supplement included in the printed issue of  PrintWeek India magazine dated 5 November 2010.
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